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A machine was purchased on 1.4.12 4 rupees 15 lakh with scrap value of rupees 40000 at the end of its useful life depreciation was provided at the rate 15% per annum on diminishing balance method on 1st July 2015 the machinery got damaged in was disposed of for rupees 9 lakh 4385 as a result of there will be?
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A machine was purchased on 1.4.12 4 rupees 15 lakh with scrap value of...
Calculation of Depreciation:
The machine was purchased on 1.4.12 for 4 rupees 15 lakh and had a scrap value of rupees 40000 at the end of its useful life. Depreciation was provided at the rate of 15% per annum on the diminishing balance method.
To calculate the annual depreciation, we will use the formula:
Depreciation = (Cost of machine - Scrap value) * Rate of depreciation
Depreciation for the first year:
Depreciation = (4,15,00,000 - 40,000) * 15% = 61,50,000
Depreciation for the second year:
Depreciation = (4,15,00,000 - 61,50,000 - 40,000) * 15% = 54,77,500
Depreciation for the third year:
Depreciation = (4,15,00,000 - 61,50,000 - 54,77,500 - 40,000) * 15% = 46,55,875
Calculation of Remaining Book Value:
To calculate the remaining book value of the machine on 1st July 2015, we need to subtract the total depreciation from the cost of the machine.
Book value as on 1.7.2015 = Cost of machine - Total depreciation
Book value as on 1.7.2015 = 4,15,00,000 - (61,50,000 + 54,77,500 + 46,55,875) = 2,52,16,625
Calculation of Loss on Disposal:
The machinery got damaged and was disposed of for rupees 9 lakh 4385. To calculate the loss on disposal, we need to compare the amount received from the disposal with the remaining book value.
Loss on disposal = Remaining book value - Amount received from disposal
Loss on disposal = 2,52,16,625 - 9,00,4385 = 2,43,16,240
Explanation:
The machine was purchased for 4 rupees 15 lakh with a scrap value of rupees 40000. Depreciation was provided at the rate of 15% per annum on the diminishing balance method. The annual depreciation was calculated for three years.
On 1st July 2015, the remaining book value of the machine was calculated by subtracting the total depreciation from the cost of the machine.
Later, the machine got damaged and was disposed of for rupees 9 lakh 4385. The loss on disposal was calculated by subtracting the amount received from the disposal from the remaining book value.
The loss on disposal was found to be 2,43,16,240.
The machine was purchased on 1.4.12 for 4 rupees 15 lakh and had a scrap value of rupees 40000 at the end of its useful life. Depreciation was provided at the rate of 15% per annum on the diminishing balance method.
To calculate the annual depreciation, we will use the formula:
Depreciation = (Cost of machine - Scrap value) * Rate of depreciation
Depreciation for the first year:
Depreciation = (4,15,00,000 - 40,000) * 15% = 61,50,000
Depreciation for the second year:
Depreciation = (4,15,00,000 - 61,50,000 - 40,000) * 15% = 54,77,500
Depreciation for the third year:
Depreciation = (4,15,00,000 - 61,50,000 - 54,77,500 - 40,000) * 15% = 46,55,875
Calculation of Remaining Book Value:
To calculate the remaining book value of the machine on 1st July 2015, we need to subtract the total depreciation from the cost of the machine.
Book value as on 1.7.2015 = Cost of machine - Total depreciation
Book value as on 1.7.2015 = 4,15,00,000 - (61,50,000 + 54,77,500 + 46,55,875) = 2,52,16,625
Calculation of Loss on Disposal:
The machinery got damaged and was disposed of for rupees 9 lakh 4385. To calculate the loss on disposal, we need to compare the amount received from the disposal with the remaining book value.
Loss on disposal = Remaining book value - Amount received from disposal
Loss on disposal = 2,52,16,625 - 9,00,4385 = 2,43,16,240
Explanation:
The machine was purchased for 4 rupees 15 lakh with a scrap value of rupees 40000. Depreciation was provided at the rate of 15% per annum on the diminishing balance method. The annual depreciation was calculated for three years.
On 1st July 2015, the remaining book value of the machine was calculated by subtracting the total depreciation from the cost of the machine.
Later, the machine got damaged and was disposed of for rupees 9 lakh 4385. The loss on disposal was calculated by subtracting the amount received from the disposal from the remaining book value.
The loss on disposal was found to be 2,43,16,240.
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A machine was purchased on 1.4.12 4 rupees 15 lakh with scrap value of rupees 40000 at the end of its useful life depreciation was provided at the rate 15% per annum on diminishing balance method on 1st July 2015 the machinery got damaged in was disposed of for rupees 9 lakh 4385 as a result of there will be?
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A machine was purchased on 1.4.12 4 rupees 15 lakh with scrap value of rupees 40000 at the end of its useful life depreciation was provided at the rate 15% per annum on diminishing balance method on 1st July 2015 the machinery got damaged in was disposed of for rupees 9 lakh 4385 as a result of there will be? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about A machine was purchased on 1.4.12 4 rupees 15 lakh with scrap value of rupees 40000 at the end of its useful life depreciation was provided at the rate 15% per annum on diminishing balance method on 1st July 2015 the machinery got damaged in was disposed of for rupees 9 lakh 4385 as a result of there will be? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A machine was purchased on 1.4.12 4 rupees 15 lakh with scrap value of rupees 40000 at the end of its useful life depreciation was provided at the rate 15% per annum on diminishing balance method on 1st July 2015 the machinery got damaged in was disposed of for rupees 9 lakh 4385 as a result of there will be?.
A machine was purchased on 1.4.12 4 rupees 15 lakh with scrap value of rupees 40000 at the end of its useful life depreciation was provided at the rate 15% per annum on diminishing balance method on 1st July 2015 the machinery got damaged in was disposed of for rupees 9 lakh 4385 as a result of there will be? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about A machine was purchased on 1.4.12 4 rupees 15 lakh with scrap value of rupees 40000 at the end of its useful life depreciation was provided at the rate 15% per annum on diminishing balance method on 1st July 2015 the machinery got damaged in was disposed of for rupees 9 lakh 4385 as a result of there will be? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A machine was purchased on 1.4.12 4 rupees 15 lakh with scrap value of rupees 40000 at the end of its useful life depreciation was provided at the rate 15% per annum on diminishing balance method on 1st July 2015 the machinery got damaged in was disposed of for rupees 9 lakh 4385 as a result of there will be?.
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