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Amit Ltd. purchased a machine on 01.01.2008 for Rs. 1,20,000. Installation expenses were Rs. 10,000. Residual value after 5 years Rs. 5,000. On 01.07.2008, expenses for repairs were incurred to the extent of Rs. 2,000. Depreciation is provided @10% p.a. under written down value method. Deprecation for the 4th year will be? A- Rs. 9,113 B- Rs. 8,748 C- Rs. 9,631 D- Rs. 9,477?
Most Upvoted Answer
Amit Ltd. purchased a machine on 01.01.2008 for Rs. 1,20,000. Installa...
*short cut.....
dep=(cost (1-rate)^n-1)×rate
dep=(130000 (1-0.1)^4-1)×0.1
dep=(130000 (0.9)^3)×0.1=9477
dep=(cost (1-rate)^n-1)×rate
dep=(130000 (1-0.1)^4-1)×0.1
dep=(130000 (0.9)^3)×0.1=9477
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Amit Ltd. purchased a machine on 01.01.2008 for Rs. 1,20,000. Installa...
Depreciation for the 4th year will be calculated based on the written down value method. Let's break down the information given and calculate the depreciation.
1. Cost of the machine: Rs. 1,20,000
2. Installation expenses: Rs. 10,000
3. Residual value after 5 years: Rs. 5,000
First, we need to calculate the depreciable cost, which is the cost of the machine minus the residual value.
Depreciable cost = Cost of the machine + Installation expenses - Residual value
Depreciable cost = Rs. 1,20,000 + Rs. 10,000 - Rs. 5,000
Depreciable cost = Rs. 1,25,000
Next, we need to calculate the depreciation rate. The depreciation rate is given as 10% per annum.
Depreciation rate = 10% = 0.10
Now, we can calculate the depreciation for the 4th year using the written down value method. In this method, the depreciation is calculated as a percentage of the written down value of the asset.
Depreciation for the 4th year = Written down value at the beginning of the 4th year * Depreciation rate
To calculate the written down value at the beginning of the 4th year, we need to subtract the accumulated depreciation from the depreciable cost.
Accumulated depreciation for the 3rd year = Depreciation for the 1st year + Depreciation for the 2nd year + Depreciation for the 3rd year
Accumulated depreciation for the 3rd year = Rs. 1,25,000 * 0.10 + Rs. 1,12,500 * 0.10 + Rs. 1,01,250 * 0.10
Accumulated depreciation for the 3rd year = Rs. 37,500 + Rs. 11,250 + Rs. 10,125
Accumulated depreciation for the 3rd year = Rs. 58,875
Written down value at the beginning of the 4th year = Depreciable cost - Accumulated depreciation for the 3rd year
Written down value at the beginning of the 4th year = Rs. 1,25,000 - Rs. 58,875
Written down value at the beginning of the 4th year = Rs. 66,125
Depreciation for the 4th year = Rs. 66,125 * 0.10
Depreciation for the 4th year = Rs. 6,612.50
Therefore, the depreciation for the 4th year will be Rs. 6,612.50, which is closest to option B - Rs. 8,748.
1. Cost of the machine: Rs. 1,20,000
2. Installation expenses: Rs. 10,000
3. Residual value after 5 years: Rs. 5,000
First, we need to calculate the depreciable cost, which is the cost of the machine minus the residual value.
Depreciable cost = Cost of the machine + Installation expenses - Residual value
Depreciable cost = Rs. 1,20,000 + Rs. 10,000 - Rs. 5,000
Depreciable cost = Rs. 1,25,000
Next, we need to calculate the depreciation rate. The depreciation rate is given as 10% per annum.
Depreciation rate = 10% = 0.10
Now, we can calculate the depreciation for the 4th year using the written down value method. In this method, the depreciation is calculated as a percentage of the written down value of the asset.
Depreciation for the 4th year = Written down value at the beginning of the 4th year * Depreciation rate
To calculate the written down value at the beginning of the 4th year, we need to subtract the accumulated depreciation from the depreciable cost.
Accumulated depreciation for the 3rd year = Depreciation for the 1st year + Depreciation for the 2nd year + Depreciation for the 3rd year
Accumulated depreciation for the 3rd year = Rs. 1,25,000 * 0.10 + Rs. 1,12,500 * 0.10 + Rs. 1,01,250 * 0.10
Accumulated depreciation for the 3rd year = Rs. 37,500 + Rs. 11,250 + Rs. 10,125
Accumulated depreciation for the 3rd year = Rs. 58,875
Written down value at the beginning of the 4th year = Depreciable cost - Accumulated depreciation for the 3rd year
Written down value at the beginning of the 4th year = Rs. 1,25,000 - Rs. 58,875
Written down value at the beginning of the 4th year = Rs. 66,125
Depreciation for the 4th year = Rs. 66,125 * 0.10
Depreciation for the 4th year = Rs. 6,612.50
Therefore, the depreciation for the 4th year will be Rs. 6,612.50, which is closest to option B - Rs. 8,748.
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Amit Ltd. purchased a machine on 01.01.2008 for Rs. 1,20,000. Installation expenses were Rs. 10,000. Residual value after 5 years Rs. 5,000. On 01.07.2008, expenses for repairs were incurred to the extent of Rs. 2,000. Depreciation is provided @10% p.a. under written down value method. Deprecation for the 4th year will be? A- Rs. 9,113 B- Rs. 8,748 C- Rs. 9,631 D- Rs. 9,477?
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Amit Ltd. purchased a machine on 01.01.2008 for Rs. 1,20,000. Installation expenses were Rs. 10,000. Residual value after 5 years Rs. 5,000. On 01.07.2008, expenses for repairs were incurred to the extent of Rs. 2,000. Depreciation is provided @10% p.a. under written down value method. Deprecation for the 4th year will be? A- Rs. 9,113 B- Rs. 8,748 C- Rs. 9,631 D- Rs. 9,477? 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 Amit Ltd. purchased a machine on 01.01.2008 for Rs. 1,20,000. Installation expenses were Rs. 10,000. Residual value after 5 years Rs. 5,000. On 01.07.2008, expenses for repairs were incurred to the extent of Rs. 2,000. Depreciation is provided @10% p.a. under written down value method. Deprecation for the 4th year will be? A- Rs. 9,113 B- Rs. 8,748 C- Rs. 9,631 D- Rs. 9,477? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Amit Ltd. purchased a machine on 01.01.2008 for Rs. 1,20,000. Installation expenses were Rs. 10,000. Residual value after 5 years Rs. 5,000. On 01.07.2008, expenses for repairs were incurred to the extent of Rs. 2,000. Depreciation is provided @10% p.a. under written down value method. Deprecation for the 4th year will be? A- Rs. 9,113 B- Rs. 8,748 C- Rs. 9,631 D- Rs. 9,477?.
Amit Ltd. purchased a machine on 01.01.2008 for Rs. 1,20,000. Installation expenses were Rs. 10,000. Residual value after 5 years Rs. 5,000. On 01.07.2008, expenses for repairs were incurred to the extent of Rs. 2,000. Depreciation is provided @10% p.a. under written down value method. Deprecation for the 4th year will be? A- Rs. 9,113 B- Rs. 8,748 C- Rs. 9,631 D- Rs. 9,477? 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 Amit Ltd. purchased a machine on 01.01.2008 for Rs. 1,20,000. Installation expenses were Rs. 10,000. Residual value after 5 years Rs. 5,000. On 01.07.2008, expenses for repairs were incurred to the extent of Rs. 2,000. Depreciation is provided @10% p.a. under written down value method. Deprecation for the 4th year will be? A- Rs. 9,113 B- Rs. 8,748 C- Rs. 9,631 D- Rs. 9,477? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Amit Ltd. purchased a machine on 01.01.2008 for Rs. 1,20,000. Installation expenses were Rs. 10,000. Residual value after 5 years Rs. 5,000. On 01.07.2008, expenses for repairs were incurred to the extent of Rs. 2,000. Depreciation is provided @10% p.a. under written down value method. Deprecation for the 4th year will be? A- Rs. 9,113 B- Rs. 8,748 C- Rs. 9,631 D- Rs. 9,477?.
Solutions for Amit Ltd. purchased a machine on 01.01.2008 for Rs. 1,20,000. Installation expenses were Rs. 10,000. Residual value after 5 years Rs. 5,000. On 01.07.2008, expenses for repairs were incurred to the extent of Rs. 2,000. Depreciation is provided @10% p.a. under written down value method. Deprecation for the 4th year will be? A- Rs. 9,113 B- Rs. 8,748 C- Rs. 9,631 D- Rs. 9,477? in English & in Hindi are available as part of our courses for CA Foundation.
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Amit Ltd. purchased a machine on 01.01.2008 for Rs. 1,20,000. Installation expenses were Rs. 10,000. Residual value after 5 years Rs. 5,000. On 01.07.2008, expenses for repairs were incurred to the extent of Rs. 2,000. Depreciation is provided @10% p.a. under written down value method. Deprecation for the 4th year will be? A- Rs. 9,113 B- Rs. 8,748 C- Rs. 9,631 D- Rs. 9,477?, a detailed solution for Amit Ltd. purchased a machine on 01.01.2008 for Rs. 1,20,000. Installation expenses were Rs. 10,000. Residual value after 5 years Rs. 5,000. On 01.07.2008, expenses for repairs were incurred to the extent of Rs. 2,000. Depreciation is provided @10% p.a. under written down value method. Deprecation for the 4th year will be? A- Rs. 9,113 B- Rs. 8,748 C- Rs. 9,631 D- Rs. 9,477? has been provided alongside types of Amit Ltd. purchased a machine on 01.01.2008 for Rs. 1,20,000. Installation expenses were Rs. 10,000. Residual value after 5 years Rs. 5,000. On 01.07.2008, expenses for repairs were incurred to the extent of Rs. 2,000. Depreciation is provided @10% p.a. under written down value method. Deprecation for the 4th year will be? A- Rs. 9,113 B- Rs. 8,748 C- Rs. 9,631 D- Rs. 9,477? theory, EduRev gives you an
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