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Mohan purchased a machinery amounting Rs. 10,00,000 on 1st April, 2000. On 31st March, 2006 The similar machinery could be purchased for Rs. 20,00,000 but the realizable value of the machinery (purchased on 1.4.2000) was estimated at Rs. 15,00,000. The present discounted value of the future net cash inflows that the machinery was expected to generate in the normal course of business, was calculated as Rs. 12,00,000.
Q.
The realizable value of machinery is
The realizable value of machinery is
- a)Rs. 10,00,000.
- b)Rs. 20,00,000.
- c)Rs. 12,00,000
- d)Rs. 15,00,000.
Correct answer is option 'D'. Can you explain this answer?
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Most Upvoted Answer
Mohan purchased a machinery amounting Rs. 10,00,000 on 1st April, 2000...
Realizable value of machinery
The realizable value of the machinery purchased by Mohan on 1st April 2000 was estimated at Rs. 15,00,000 on 31st March 2006.
Explanation:
Realizable value refers to the amount that can be obtained by selling an asset in the market. In this case, the machinery purchased by Mohan had a realizable value of Rs. 15,00,000 on 31st March 2006. This means that if Mohan were to sell the machinery at that point in time, he could have obtained Rs. 15,00,000 for it.
Calculation of realizable value:
The question states that a similar machinery could be purchased for Rs. 20,00,000 on 31st March 2006. This means that the market value of the machinery purchased by Mohan had increased over time.
However, the realizable value of the machinery is not the same as its market value. Realizable value takes into account the condition of the asset, its age, and other relevant factors that might affect its resale value.
Therefore, the realizable value of the machinery purchased by Mohan was estimated at Rs. 15,00,000, which is less than its market value of Rs. 20,00,000.
Conclusion:
The realizable value of an asset refers to the amount that can be obtained by selling it in the market. In this case, the realizable value of the machinery purchased by Mohan was estimated at Rs. 15,00,000 on 31st March 2006, which is less than its market value of Rs. 20,00,000.
The realizable value of the machinery purchased by Mohan on 1st April 2000 was estimated at Rs. 15,00,000 on 31st March 2006.
Explanation:
Realizable value refers to the amount that can be obtained by selling an asset in the market. In this case, the machinery purchased by Mohan had a realizable value of Rs. 15,00,000 on 31st March 2006. This means that if Mohan were to sell the machinery at that point in time, he could have obtained Rs. 15,00,000 for it.
Calculation of realizable value:
The question states that a similar machinery could be purchased for Rs. 20,00,000 on 31st March 2006. This means that the market value of the machinery purchased by Mohan had increased over time.
However, the realizable value of the machinery is not the same as its market value. Realizable value takes into account the condition of the asset, its age, and other relevant factors that might affect its resale value.
Therefore, the realizable value of the machinery purchased by Mohan was estimated at Rs. 15,00,000, which is less than its market value of Rs. 20,00,000.
Conclusion:
The realizable value of an asset refers to the amount that can be obtained by selling it in the market. In this case, the realizable value of the machinery purchased by Mohan was estimated at Rs. 15,00,000 on 31st March 2006, which is less than its market value of Rs. 20,00,000.
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Community Answer
Mohan purchased a machinery amounting Rs. 10,00,000 on 1st April, 2000...
See there are 4 valuation principals.
1) historical cost- cost at which assests were bought
2) realiseable value- rate at which it can sold today in the market
3)current cost- if the same asset was to purchased today, what would be it's cost? that's called current cost.
4)present value- if we revalue the asset today, how much price it will fetch us in future? that is, future net cash flows.
1) historical cost- cost at which assests were bought
2) realiseable value- rate at which it can sold today in the market
3)current cost- if the same asset was to purchased today, what would be it's cost? that's called current cost.
4)present value- if we revalue the asset today, how much price it will fetch us in future? that is, future net cash flows.
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Mohan purchased a machinery amounting Rs. 10,00,000 on 1st April, 2000. On 31st March, 2006 The similar machinery could be purchased for Rs. 20,00,000 but the realizable value of the machinery (purchased on 1.4.2000) was estimated at Rs. 15,00,000. The present discounted value of the future net cash inflows that the machinery was expected to generate in the normal course of business, was calculated as Rs. 12,00,000.Q.The realizable value of machinery isa)Rs. 10,00,000.b)Rs. 20,00,000.c)Rs. 12,00,000d)Rs. 15,00,000.Correct answer is option 'D'. Can you explain this answer?
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Mohan purchased a machinery amounting Rs. 10,00,000 on 1st April, 2000. On 31st March, 2006 The similar machinery could be purchased for Rs. 20,00,000 but the realizable value of the machinery (purchased on 1.4.2000) was estimated at Rs. 15,00,000. The present discounted value of the future net cash inflows that the machinery was expected to generate in the normal course of business, was calculated as Rs. 12,00,000.Q.The realizable value of machinery isa)Rs. 10,00,000.b)Rs. 20,00,000.c)Rs. 12,00,000d)Rs. 15,00,000.Correct answer is option 'D'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Mohan purchased a machinery amounting Rs. 10,00,000 on 1st April, 2000. On 31st March, 2006 The similar machinery could be purchased for Rs. 20,00,000 but the realizable value of the machinery (purchased on 1.4.2000) was estimated at Rs. 15,00,000. The present discounted value of the future net cash inflows that the machinery was expected to generate in the normal course of business, was calculated as Rs. 12,00,000.Q.The realizable value of machinery isa)Rs. 10,00,000.b)Rs. 20,00,000.c)Rs. 12,00,000d)Rs. 15,00,000.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Mohan purchased a machinery amounting Rs. 10,00,000 on 1st April, 2000. On 31st March, 2006 The similar machinery could be purchased for Rs. 20,00,000 but the realizable value of the machinery (purchased on 1.4.2000) was estimated at Rs. 15,00,000. The present discounted value of the future net cash inflows that the machinery was expected to generate in the normal course of business, was calculated as Rs. 12,00,000.Q.The realizable value of machinery isa)Rs. 10,00,000.b)Rs. 20,00,000.c)Rs. 12,00,000d)Rs. 15,00,000.Correct answer is option 'D'. Can you explain this answer?.
Mohan purchased a machinery amounting Rs. 10,00,000 on 1st April, 2000. On 31st March, 2006 The similar machinery could be purchased for Rs. 20,00,000 but the realizable value of the machinery (purchased on 1.4.2000) was estimated at Rs. 15,00,000. The present discounted value of the future net cash inflows that the machinery was expected to generate in the normal course of business, was calculated as Rs. 12,00,000.Q.The realizable value of machinery isa)Rs. 10,00,000.b)Rs. 20,00,000.c)Rs. 12,00,000d)Rs. 15,00,000.Correct answer is option 'D'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Mohan purchased a machinery amounting Rs. 10,00,000 on 1st April, 2000. On 31st March, 2006 The similar machinery could be purchased for Rs. 20,00,000 but the realizable value of the machinery (purchased on 1.4.2000) was estimated at Rs. 15,00,000. The present discounted value of the future net cash inflows that the machinery was expected to generate in the normal course of business, was calculated as Rs. 12,00,000.Q.The realizable value of machinery isa)Rs. 10,00,000.b)Rs. 20,00,000.c)Rs. 12,00,000d)Rs. 15,00,000.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Mohan purchased a machinery amounting Rs. 10,00,000 on 1st April, 2000. On 31st March, 2006 The similar machinery could be purchased for Rs. 20,00,000 but the realizable value of the machinery (purchased on 1.4.2000) was estimated at Rs. 15,00,000. The present discounted value of the future net cash inflows that the machinery was expected to generate in the normal course of business, was calculated as Rs. 12,00,000.Q.The realizable value of machinery isa)Rs. 10,00,000.b)Rs. 20,00,000.c)Rs. 12,00,000d)Rs. 15,00,000.Correct answer is option 'D'. Can you explain this answer?.
Solutions for Mohan purchased a machinery amounting Rs. 10,00,000 on 1st April, 2000. On 31st March, 2006 The similar machinery could be purchased for Rs. 20,00,000 but the realizable value of the machinery (purchased on 1.4.2000) was estimated at Rs. 15,00,000. The present discounted value of the future net cash inflows that the machinery was expected to generate in the normal course of business, was calculated as Rs. 12,00,000.Q.The realizable value of machinery isa)Rs. 10,00,000.b)Rs. 20,00,000.c)Rs. 12,00,000d)Rs. 15,00,000.Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
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Mohan purchased a machinery amounting Rs. 10,00,000 on 1st April, 2000. On 31st March, 2006 The similar machinery could be purchased for Rs. 20,00,000 but the realizable value of the machinery (purchased on 1.4.2000) was estimated at Rs. 15,00,000. The present discounted value of the future net cash inflows that the machinery was expected to generate in the normal course of business, was calculated as Rs. 12,00,000.Q.The realizable value of machinery isa)Rs. 10,00,000.b)Rs. 20,00,000.c)Rs. 12,00,000d)Rs. 15,00,000.Correct answer is option 'D'. Can you explain this answer?, a detailed solution for Mohan purchased a machinery amounting Rs. 10,00,000 on 1st April, 2000. On 31st March, 2006 The similar machinery could be purchased for Rs. 20,00,000 but the realizable value of the machinery (purchased on 1.4.2000) was estimated at Rs. 15,00,000. The present discounted value of the future net cash inflows that the machinery was expected to generate in the normal course of business, was calculated as Rs. 12,00,000.Q.The realizable value of machinery isa)Rs. 10,00,000.b)Rs. 20,00,000.c)Rs. 12,00,000d)Rs. 15,00,000.Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of Mohan purchased a machinery amounting Rs. 10,00,000 on 1st April, 2000. On 31st March, 2006 The similar machinery could be purchased for Rs. 20,00,000 but the realizable value of the machinery (purchased on 1.4.2000) was estimated at Rs. 15,00,000. The present discounted value of the future net cash inflows that the machinery was expected to generate in the normal course of business, was calculated as Rs. 12,00,000.Q.The realizable value of machinery isa)Rs. 10,00,000.b)Rs. 20,00,000.c)Rs. 12,00,000d)Rs. 15,00,000.Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Mohan purchased a machinery amounting Rs. 10,00,000 on 1st April, 2000. On 31st March, 2006 The similar machinery could be purchased for Rs. 20,00,000 but the realizable value of the machinery (purchased on 1.4.2000) was estimated at Rs. 15,00,000. The present discounted value of the future net cash inflows that the machinery was expected to generate in the normal course of business, was calculated as Rs. 12,00,000.Q.The realizable value of machinery isa)Rs. 10,00,000.b)Rs. 20,00,000.c)Rs. 12,00,000d)Rs. 15,00,000.Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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