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H Ltd. purchased a machinery on April 01, 2005 for Rs.3,00,000. It is estimated that the machinery will have a useful life of 5 years after which it will have no salvage value. If the company follows sum-of-the-years’ digits method of depreciation, the amount of depreciation charged during the year 2009-2010 was
  • a)
    Rs.1,00,000
  • b)
    Rs.80,000
  • c)
    Rs.60,000
  • d)
    Rs.20,000
Correct answer is option 'D'. Can you explain this answer?
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H Ltd. purchased a machinery on April 01, 2005 for Rs.3,00,000. It is ...
Sum of year =1+ 2+ 3+ 4+ 5= 15For 09-10 mean for last year so depreciation according to the sum of year digit method =1/15Machinary cost = 300000Last year amt of depreciation = 3,00,000*1/15= 20,000:-)
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H Ltd. purchased a machinery on April 01, 2005 for Rs.3,00,000. It is ...
Understanding Sum-of-the-Years-Digits Depreciation
The sum-of-the-years-digits (SYD) method is an accelerated depreciation method that allocates a larger depreciation expense in the earlier years of an asset's life.
Calculation Steps
1. Determine Useful Life and Total Depreciable Amount
- Useful Life: 5 years
- Cost of Machinery: Rs. 3,00,000
- Salvage Value: Rs. 0
- Total Depreciable Amount: Rs. 3,00,000
2. Calculate Sum of the Years' Digits
- SYD = 1 + 2 + 3 + 4 + 5 = 15
3. Depreciation Expense for Each Year
- Year 1: 5/15 of Rs. 3,00,000 = Rs. 1,00,000
- Year 2: 4/15 of Rs. 3,00,000 = Rs. 80,000
- Year 3: 3/15 of Rs. 3,00,000 = Rs. 60,000
- Year 4: 2/15 of Rs. 3,00,000 = Rs. 40,000
- Year 5: 1/15 of Rs. 3,00,000 = Rs. 20,000
Depreciation Charged During 2009-2010
- The asset was purchased on April 1, 2005, and had a useful life of 5 years.
- Therefore, the asset will be fully depreciated by March 31, 2010.
- In the financial year 2009-2010 (April 1, 2009, to March 31, 2010), the depreciation charged will be for the fifth year.
Conclusion
- The depreciation expense for the year 2009-2010 is Rs. 20,000, corresponding to the last year of the asset's useful life.
- Hence, the correct answer is option 'D': Rs. 20,000.
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H Ltd. purchased a machinery on April 01, 2005 for Rs.3,00,000. It is estimated that the machinery will have a useful life of 5 years after which it will have no salvage value. If the company follows sum-of-the-years’ digits method of depreciation, the amount of depreciation charged during the year 2009-2010 wasa)Rs.1,00,000b)Rs.80,000c)Rs.60,000d)Rs.20,000Correct answer is option 'D'. Can you explain this answer?
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H Ltd. purchased a machinery on April 01, 2005 for Rs.3,00,000. It is estimated that the machinery will have a useful life of 5 years after which it will have no salvage value. If the company follows sum-of-the-years’ digits method of depreciation, the amount of depreciation charged during the year 2009-2010 wasa)Rs.1,00,000b)Rs.80,000c)Rs.60,000d)Rs.20,000Correct 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 H Ltd. purchased a machinery on April 01, 2005 for Rs.3,00,000. It is estimated that the machinery will have a useful life of 5 years after which it will have no salvage value. If the company follows sum-of-the-years’ digits method of depreciation, the amount of depreciation charged during the year 2009-2010 wasa)Rs.1,00,000b)Rs.80,000c)Rs.60,000d)Rs.20,000Correct 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 H Ltd. purchased a machinery on April 01, 2005 for Rs.3,00,000. It is estimated that the machinery will have a useful life of 5 years after which it will have no salvage value. If the company follows sum-of-the-years’ digits method of depreciation, the amount of depreciation charged during the year 2009-2010 wasa)Rs.1,00,000b)Rs.80,000c)Rs.60,000d)Rs.20,000Correct answer is option 'D'. Can you explain this answer?.
Solutions for H Ltd. purchased a machinery on April 01, 2005 for Rs.3,00,000. It is estimated that the machinery will have a useful life of 5 years after which it will have no salvage value. If the company follows sum-of-the-years’ digits method of depreciation, the amount of depreciation charged during the year 2009-2010 wasa)Rs.1,00,000b)Rs.80,000c)Rs.60,000d)Rs.20,000Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation. Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of H Ltd. purchased a machinery on April 01, 2005 for Rs.3,00,000. It is estimated that the machinery will have a useful life of 5 years after which it will have no salvage value. If the company follows sum-of-the-years’ digits method of depreciation, the amount of depreciation charged during the year 2009-2010 wasa)Rs.1,00,000b)Rs.80,000c)Rs.60,000d)Rs.20,000Correct answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of H Ltd. purchased a machinery on April 01, 2005 for Rs.3,00,000. It is estimated that the machinery will have a useful life of 5 years after which it will have no salvage value. If the company follows sum-of-the-years’ digits method of depreciation, the amount of depreciation charged during the year 2009-2010 wasa)Rs.1,00,000b)Rs.80,000c)Rs.60,000d)Rs.20,000Correct answer is option 'D'. Can you explain this answer?, a detailed solution for H Ltd. purchased a machinery on April 01, 2005 for Rs.3,00,000. It is estimated that the machinery will have a useful life of 5 years after which it will have no salvage value. If the company follows sum-of-the-years’ digits method of depreciation, the amount of depreciation charged during the year 2009-2010 wasa)Rs.1,00,000b)Rs.80,000c)Rs.60,000d)Rs.20,000Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of H Ltd. purchased a machinery on April 01, 2005 for Rs.3,00,000. It is estimated that the machinery will have a useful life of 5 years after which it will have no salvage value. If the company follows sum-of-the-years’ digits method of depreciation, the amount of depreciation charged during the year 2009-2010 wasa)Rs.1,00,000b)Rs.80,000c)Rs.60,000d)Rs.20,000Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice H Ltd. purchased a machinery on April 01, 2005 for Rs.3,00,000. It is estimated that the machinery will have a useful life of 5 years after which it will have no salvage value. If the company follows sum-of-the-years’ digits method of depreciation, the amount of depreciation charged during the year 2009-2010 wasa)Rs.1,00,000b)Rs.80,000c)Rs.60,000d)Rs.20,000Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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