UPSC Exam > UPSC Questions > Machinery was purchased on 1-1--2016 for rs 4...
Start Learning for Free
Machinery was purchased on 1-1--2016 for rs 40000.on 30th June , another second machine was purchased for rs.15000 and rs. 5000 was spent for repairs . On 30th June 2017 the second machine was sold for rs. 15000.prepare machinery account after allowing depreciation of 10% p.a. on the written down value.?
Most Upvoted Answer
Machinery was purchased on 1-1--2016 for rs 40000.on 30th June , anoth...
Calculation of Machinery Account after Depreciation
Initial Purchase of Machinery on 1-1-2016
- Machinery purchased on 1-1-2016 for Rs. 40,000
- Depreciation for the year 2016 = 10% of Rs. 40,000 = Rs. 4,000
- Written down value as of 1-1-2017 = Rs. 40,000 - Rs. 4,000 = Rs. 36,000
Second Machine Purchase and Repairs on 30th June
- Another machine purchased on 30th June for Rs. 15,000
- Repairs cost incurred for Rs. 5,000
- Total cost of new machine = Rs. 15,000 + Rs. 5,000 = Rs. 20,000
- Depreciation for the year 2017 = 10% of Rs. 36,000 = Rs. 3,600
- Written down value as of 30th June 2017 = Rs. 36,000 - Rs. 3,600 = Rs. 32,400
Sale of Second Machine on 30th June 2017
- Second machine sold for Rs. 15,000
- Book value of the second machine on the date of sale = Rs. 32,400
- Profit/(Loss) on the sale = Sale price - Book value = Rs. 15,000 - Rs. 32,400 = (Rs. 17,400)
Final Machinery Account after Depreciation
- Opening balance (1-1-2017) = Rs. 36,000
- Add: Purchases and repairs = Rs. 20,000 + Rs. 5,000 = Rs. 25,000
- Less: Depreciation for 2017 = Rs. 3,600
- Less: Loss on sale of second machine = Rs. 17,400
- Closing balance (30-6-2017) = Rs. 40,000 - Rs. 4,000 - Rs. 3,600 - Rs. 17,400 = Rs. 15,000
By following the above calculations, we have determined the machinery account after allowing for depreciation of 10% per annum on the written down value.
Initial Purchase of Machinery on 1-1-2016
- Machinery purchased on 1-1-2016 for Rs. 40,000
- Depreciation for the year 2016 = 10% of Rs. 40,000 = Rs. 4,000
- Written down value as of 1-1-2017 = Rs. 40,000 - Rs. 4,000 = Rs. 36,000
Second Machine Purchase and Repairs on 30th June
- Another machine purchased on 30th June for Rs. 15,000
- Repairs cost incurred for Rs. 5,000
- Total cost of new machine = Rs. 15,000 + Rs. 5,000 = Rs. 20,000
- Depreciation for the year 2017 = 10% of Rs. 36,000 = Rs. 3,600
- Written down value as of 30th June 2017 = Rs. 36,000 - Rs. 3,600 = Rs. 32,400
Sale of Second Machine on 30th June 2017
- Second machine sold for Rs. 15,000
- Book value of the second machine on the date of sale = Rs. 32,400
- Profit/(Loss) on the sale = Sale price - Book value = Rs. 15,000 - Rs. 32,400 = (Rs. 17,400)
Final Machinery Account after Depreciation
- Opening balance (1-1-2017) = Rs. 36,000
- Add: Purchases and repairs = Rs. 20,000 + Rs. 5,000 = Rs. 25,000
- Less: Depreciation for 2017 = Rs. 3,600
- Less: Loss on sale of second machine = Rs. 17,400
- Closing balance (30-6-2017) = Rs. 40,000 - Rs. 4,000 - Rs. 3,600 - Rs. 17,400 = Rs. 15,000
By following the above calculations, we have determined the machinery account after allowing for depreciation of 10% per annum on the written down value.
Community Answer
Machinery was purchased on 1-1--2016 for rs 40000.on 30th June , anoth...
Separator working notes
Attention UPSC Students!
To make sure you are not studying endlessly, EduRev has designed UPSC study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in UPSC.
|
Explore Courses for UPSC exam
|
|
Similar UPSC Doubts
Top Courses for UPSCView all
Machinery was purchased on 1-1--2016 for rs 40000.on 30th June , another second machine was purchased for rs.15000 and rs. 5000 was spent for repairs . On 30th June 2017 the second machine was sold for rs. 15000.prepare machinery account after allowing depreciation of 10% p.a. on the written down value.?
Question Description
Machinery was purchased on 1-1--2016 for rs 40000.on 30th June , another second machine was purchased for rs.15000 and rs. 5000 was spent for repairs . On 30th June 2017 the second machine was sold for rs. 15000.prepare machinery account after allowing depreciation of 10% p.a. on the written down value.? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Machinery was purchased on 1-1--2016 for rs 40000.on 30th June , another second machine was purchased for rs.15000 and rs. 5000 was spent for repairs . On 30th June 2017 the second machine was sold for rs. 15000.prepare machinery account after allowing depreciation of 10% p.a. on the written down value.? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Machinery was purchased on 1-1--2016 for rs 40000.on 30th June , another second machine was purchased for rs.15000 and rs. 5000 was spent for repairs . On 30th June 2017 the second machine was sold for rs. 15000.prepare machinery account after allowing depreciation of 10% p.a. on the written down value.?.
Machinery was purchased on 1-1--2016 for rs 40000.on 30th June , another second machine was purchased for rs.15000 and rs. 5000 was spent for repairs . On 30th June 2017 the second machine was sold for rs. 15000.prepare machinery account after allowing depreciation of 10% p.a. on the written down value.? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Machinery was purchased on 1-1--2016 for rs 40000.on 30th June , another second machine was purchased for rs.15000 and rs. 5000 was spent for repairs . On 30th June 2017 the second machine was sold for rs. 15000.prepare machinery account after allowing depreciation of 10% p.a. on the written down value.? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Machinery was purchased on 1-1--2016 for rs 40000.on 30th June , another second machine was purchased for rs.15000 and rs. 5000 was spent for repairs . On 30th June 2017 the second machine was sold for rs. 15000.prepare machinery account after allowing depreciation of 10% p.a. on the written down value.?.
Solutions for Machinery was purchased on 1-1--2016 for rs 40000.on 30th June , another second machine was purchased for rs.15000 and rs. 5000 was spent for repairs . On 30th June 2017 the second machine was sold for rs. 15000.prepare machinery account after allowing depreciation of 10% p.a. on the written down value.? in English & in Hindi are available as part of our courses for UPSC.
Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.
Here you can find the meaning of Machinery was purchased on 1-1--2016 for rs 40000.on 30th June , another second machine was purchased for rs.15000 and rs. 5000 was spent for repairs . On 30th June 2017 the second machine was sold for rs. 15000.prepare machinery account after allowing depreciation of 10% p.a. on the written down value.? defined & explained in the simplest way possible. Besides giving the explanation of
Machinery was purchased on 1-1--2016 for rs 40000.on 30th June , another second machine was purchased for rs.15000 and rs. 5000 was spent for repairs . On 30th June 2017 the second machine was sold for rs. 15000.prepare machinery account after allowing depreciation of 10% p.a. on the written down value.?, a detailed solution for Machinery was purchased on 1-1--2016 for rs 40000.on 30th June , another second machine was purchased for rs.15000 and rs. 5000 was spent for repairs . On 30th June 2017 the second machine was sold for rs. 15000.prepare machinery account after allowing depreciation of 10% p.a. on the written down value.? has been provided alongside types of Machinery was purchased on 1-1--2016 for rs 40000.on 30th June , another second machine was purchased for rs.15000 and rs. 5000 was spent for repairs . On 30th June 2017 the second machine was sold for rs. 15000.prepare machinery account after allowing depreciation of 10% p.a. on the written down value.? theory, EduRev gives you an
ample number of questions to practice Machinery was purchased on 1-1--2016 for rs 40000.on 30th June , another second machine was purchased for rs.15000 and rs. 5000 was spent for repairs . On 30th June 2017 the second machine was sold for rs. 15000.prepare machinery account after allowing depreciation of 10% p.a. on the written down value.? tests, examples and also practice UPSC tests.
|
|
Explore Courses for UPSC 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