CA Foundation Exam > CA Foundation Questions > X limited spent Rs. 10,00,000 towards constru...
Start Learning for Free
X limited spent Rs. 10,00,000 towards construction of office building. It also spent Rs. 50,000 towards construction of temporary store and used the store for building construction purpose. On completion of building construction the store was dismantled and the materials were sold for Rs. 20,000. Mr. A, a supervisor was paid Rs. 60,000 as his salary during the period of construction and he devoted 2/3rd of his time for the building construction. The capitalized cost of office building was:
- a)Rs. 10,00,000
- b)Rs. 11,10,000
- c)Rs. 10,90,000
- d)Rs.10,70,000
Correct answer is option 'D'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
X limited spent Rs. 10,00,000 towards construction of office building....
Calculation of capitalized cost of office building:
To calculate the capitalized cost of the office building, we need to consider all the expenses related to its construction. Let's break down the given information step by step:
1. Construction expenses:
- The company spent Rs. 10,00,000 towards the construction of the office building.
- Additionally, Rs. 50,000 was spent on the construction of a temporary store, which was used for the building construction purpose.
Total construction expenses: Rs. 10,00,000 + Rs. 50,000 = Rs. 10,50,000
2. Sale of store materials:
- After the completion of the building construction, the temporary store was dismantled, and the materials were sold for Rs. 20,000.
3. Supervisor's salary:
- Mr. A, the supervisor, was paid Rs. 60,000 as his salary during the period of construction.
- He devoted 2/3rd of his time for the building construction.
To calculate the capitalized cost, we need to determine the portion of the supervisor's salary that can be attributed to the building construction.
Portion of supervisor's salary attributed to building construction = (2/3) * Rs. 60,000 = Rs. 40,000
Calculation:
Capitalized cost of office building = Construction expenses - Sale of store materials + Portion of supervisor's salary attributed to building construction
= Rs. 10,50,000 - Rs. 20,000 + Rs. 40,000
= Rs. 10,70,000
Therefore, the correct answer is option 'D', Rs. 10,70,000.
To calculate the capitalized cost of the office building, we need to consider all the expenses related to its construction. Let's break down the given information step by step:
1. Construction expenses:
- The company spent Rs. 10,00,000 towards the construction of the office building.
- Additionally, Rs. 50,000 was spent on the construction of a temporary store, which was used for the building construction purpose.
Total construction expenses: Rs. 10,00,000 + Rs. 50,000 = Rs. 10,50,000
2. Sale of store materials:
- After the completion of the building construction, the temporary store was dismantled, and the materials were sold for Rs. 20,000.
3. Supervisor's salary:
- Mr. A, the supervisor, was paid Rs. 60,000 as his salary during the period of construction.
- He devoted 2/3rd of his time for the building construction.
To calculate the capitalized cost, we need to determine the portion of the supervisor's salary that can be attributed to the building construction.
Portion of supervisor's salary attributed to building construction = (2/3) * Rs. 60,000 = Rs. 40,000
Calculation:
Capitalized cost of office building = Construction expenses - Sale of store materials + Portion of supervisor's salary attributed to building construction
= Rs. 10,50,000 - Rs. 20,000 + Rs. 40,000
= Rs. 10,70,000
Therefore, the correct answer is option 'D', Rs. 10,70,000.
Free Test
FREE
| Start Free Test |
Community Answer
X limited spent Rs. 10,00,000 towards construction of office building....
D
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Top Courses for CA FoundationView all
X limited spent Rs. 10,00,000 towards construction of office building. It also spent Rs. 50,000 towards construction of temporary store and used the store for building construction purpose. On completion of building construction the store was dismantled and the materials were sold for Rs. 20,000. Mr. A, a supervisor was paid Rs. 60,000 as his salary during the period of construction and he devoted 2/3rdof his time for the building construction. The capitalized cost of office building was:a)Rs. 10,00,000b)Rs. 11,10,000c)Rs. 10,90,000d)Rs.10,70,000Correct answer is option 'D'. Can you explain this answer?
Question Description
X limited spent Rs. 10,00,000 towards construction of office building. It also spent Rs. 50,000 towards construction of temporary store and used the store for building construction purpose. On completion of building construction the store was dismantled and the materials were sold for Rs. 20,000. Mr. A, a supervisor was paid Rs. 60,000 as his salary during the period of construction and he devoted 2/3rdof his time for the building construction. The capitalized cost of office building was:a)Rs. 10,00,000b)Rs. 11,10,000c)Rs. 10,90,000d)Rs.10,70,000Correct 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 X limited spent Rs. 10,00,000 towards construction of office building. It also spent Rs. 50,000 towards construction of temporary store and used the store for building construction purpose. On completion of building construction the store was dismantled and the materials were sold for Rs. 20,000. Mr. A, a supervisor was paid Rs. 60,000 as his salary during the period of construction and he devoted 2/3rdof his time for the building construction. The capitalized cost of office building was:a)Rs. 10,00,000b)Rs. 11,10,000c)Rs. 10,90,000d)Rs.10,70,000Correct 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 X limited spent Rs. 10,00,000 towards construction of office building. It also spent Rs. 50,000 towards construction of temporary store and used the store for building construction purpose. On completion of building construction the store was dismantled and the materials were sold for Rs. 20,000. Mr. A, a supervisor was paid Rs. 60,000 as his salary during the period of construction and he devoted 2/3rdof his time for the building construction. The capitalized cost of office building was:a)Rs. 10,00,000b)Rs. 11,10,000c)Rs. 10,90,000d)Rs.10,70,000Correct answer is option 'D'. Can you explain this answer?.
X limited spent Rs. 10,00,000 towards construction of office building. It also spent Rs. 50,000 towards construction of temporary store and used the store for building construction purpose. On completion of building construction the store was dismantled and the materials were sold for Rs. 20,000. Mr. A, a supervisor was paid Rs. 60,000 as his salary during the period of construction and he devoted 2/3rdof his time for the building construction. The capitalized cost of office building was:a)Rs. 10,00,000b)Rs. 11,10,000c)Rs. 10,90,000d)Rs.10,70,000Correct 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 X limited spent Rs. 10,00,000 towards construction of office building. It also spent Rs. 50,000 towards construction of temporary store and used the store for building construction purpose. On completion of building construction the store was dismantled and the materials were sold for Rs. 20,000. Mr. A, a supervisor was paid Rs. 60,000 as his salary during the period of construction and he devoted 2/3rdof his time for the building construction. The capitalized cost of office building was:a)Rs. 10,00,000b)Rs. 11,10,000c)Rs. 10,90,000d)Rs.10,70,000Correct 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 X limited spent Rs. 10,00,000 towards construction of office building. It also spent Rs. 50,000 towards construction of temporary store and used the store for building construction purpose. On completion of building construction the store was dismantled and the materials were sold for Rs. 20,000. Mr. A, a supervisor was paid Rs. 60,000 as his salary during the period of construction and he devoted 2/3rdof his time for the building construction. The capitalized cost of office building was:a)Rs. 10,00,000b)Rs. 11,10,000c)Rs. 10,90,000d)Rs.10,70,000Correct answer is option 'D'. Can you explain this answer?.
Solutions for X limited spent Rs. 10,00,000 towards construction of office building. It also spent Rs. 50,000 towards construction of temporary store and used the store for building construction purpose. On completion of building construction the store was dismantled and the materials were sold for Rs. 20,000. Mr. A, a supervisor was paid Rs. 60,000 as his salary during the period of construction and he devoted 2/3rdof his time for the building construction. The capitalized cost of office building was:a)Rs. 10,00,000b)Rs. 11,10,000c)Rs. 10,90,000d)Rs.10,70,000Correct 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 X limited spent Rs. 10,00,000 towards construction of office building. It also spent Rs. 50,000 towards construction of temporary store and used the store for building construction purpose. On completion of building construction the store was dismantled and the materials were sold for Rs. 20,000. Mr. A, a supervisor was paid Rs. 60,000 as his salary during the period of construction and he devoted 2/3rdof his time for the building construction. The capitalized cost of office building was:a)Rs. 10,00,000b)Rs. 11,10,000c)Rs. 10,90,000d)Rs.10,70,000Correct answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
X limited spent Rs. 10,00,000 towards construction of office building. It also spent Rs. 50,000 towards construction of temporary store and used the store for building construction purpose. On completion of building construction the store was dismantled and the materials were sold for Rs. 20,000. Mr. A, a supervisor was paid Rs. 60,000 as his salary during the period of construction and he devoted 2/3rdof his time for the building construction. The capitalized cost of office building was:a)Rs. 10,00,000b)Rs. 11,10,000c)Rs. 10,90,000d)Rs.10,70,000Correct answer is option 'D'. Can you explain this answer?, a detailed solution for X limited spent Rs. 10,00,000 towards construction of office building. It also spent Rs. 50,000 towards construction of temporary store and used the store for building construction purpose. On completion of building construction the store was dismantled and the materials were sold for Rs. 20,000. Mr. A, a supervisor was paid Rs. 60,000 as his salary during the period of construction and he devoted 2/3rdof his time for the building construction. The capitalized cost of office building was:a)Rs. 10,00,000b)Rs. 11,10,000c)Rs. 10,90,000d)Rs.10,70,000Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of X limited spent Rs. 10,00,000 towards construction of office building. It also spent Rs. 50,000 towards construction of temporary store and used the store for building construction purpose. On completion of building construction the store was dismantled and the materials were sold for Rs. 20,000. Mr. A, a supervisor was paid Rs. 60,000 as his salary during the period of construction and he devoted 2/3rdof his time for the building construction. The capitalized cost of office building was:a)Rs. 10,00,000b)Rs. 11,10,000c)Rs. 10,90,000d)Rs.10,70,000Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice X limited spent Rs. 10,00,000 towards construction of office building. It also spent Rs. 50,000 towards construction of temporary store and used the store for building construction purpose. On completion of building construction the store was dismantled and the materials were sold for Rs. 20,000. Mr. A, a supervisor was paid Rs. 60,000 as his salary during the period of construction and he devoted 2/3rdof his time for the building construction. The capitalized cost of office building was:a)Rs. 10,00,000b)Rs. 11,10,000c)Rs. 10,90,000d)Rs.10,70,000Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup