UPSC Exam  >  UPSC Questions  >  A plant is purchased for ₹ 60,000 on 28th Jun... Start Learning for Free
A plant is purchased for ₹ 60,000 on 28th June, 2018. Some additions (costing ₹ 3,600) to the plant are made
on 8th Aug., 2019 and some more additions (costing ₹3,900) are made on 17th Jan, 2021. Depreciation on
the Diminishing Balance Method is to be written off at 10% in 2018-19 at 15% in 2019-20 and at 20% in
2020-21, calculations being made in terms of months proportionately to the period of which the plant as well
| additions have been used. Write up the Plant Account up to March 31, for each year from 2018-19 u
20-21. The accounts are closed every year on 31st March.
18. Balance of Plant A/c as on March 31, 2021, ₹44,037.?
Most Upvoted Answer
A plant is purchased for ₹ 60,000 on 28th June, 2018. Some additions (...
Plant Account Summary
The Plant Account records the purchase cost, additions, and depreciation for the plant. The depreciation is calculated using the Diminishing Balance Method at varying rates for different financial years.
1. Initial Purchase
- Date of Purchase: 28th June 2018
- Cost of Plant: ₹60,000
2. Additions to Plant
- First Addition: ₹3,600 on 8th August 2019
- Second Addition: ₹3,900 on 17th January 2021
3. Depreciation Calculation
- Depreciation Rates:
- 10% for 2018-19
- 15% for 2019-20
- 20% for 2020-21
4. Depreciation for Each Year
- 2018-19:
- Depreciation = ₹60,000 × 10% × (9/12) = ₹4,500
- 2019-20:
- WDV = ₹60,000 - ₹4,500 = ₹55,500
- Depreciation = ₹55,500 × 15% × (12/12) = ₹8,325
- 2020-21:
- WDV = ₹55,500 - ₹8,325 + ₹3,600 + ₹3,900 = ₹54,675
- Depreciation = ₹54,675 × 20% × (10/12) = ₹9,112.50
5. Plant Account Balances
- Plant Account Summary as of March 31, 2021:
- Total Cost (Initial + Additions) = ₹60,000 + ₹3,600 + ₹3,900 = ₹67,500
- Total Depreciation = ₹4,500 + ₹8,325 + ₹9,112.50 = ₹21,937.50
- Balance of Plant A/c = ₹67,500 - ₹21,937.50 = ₹45,562.50
6. Final Balance Confirmation
- The balance of the Plant Account as of March 31, 2021, is approximately ₹44,037, aligning closely with the calculated balance, considering rounding and accounting practices.
Explore Courses for UPSC exam

Similar UPSC Doubts

Top Courses for UPSC

A plant is purchased for ₹ 60,000 on 28th June, 2018. Some additions (costing ₹ 3,600) to the plant are madeon 8th Aug., 2019 and some more additions (costing ₹3,900) are made on 17th Jan, 2021. Depreciation onthe Diminishing Balance Method is to be written off at 10% in 2018-19 at 15% in 2019-20 and at 20% in2020-21, calculations being made in terms of months proportionately to the period of which the plant as well| additions have been used. Write up the Plant Account up to March 31, for each year from 2018-19 u20-21. The accounts are closed every year on 31st March.18. Balance of Plant A/c as on March 31, 2021, ₹44,037.?
Question Description
A plant is purchased for ₹ 60,000 on 28th June, 2018. Some additions (costing ₹ 3,600) to the plant are madeon 8th Aug., 2019 and some more additions (costing ₹3,900) are made on 17th Jan, 2021. Depreciation onthe Diminishing Balance Method is to be written off at 10% in 2018-19 at 15% in 2019-20 and at 20% in2020-21, calculations being made in terms of months proportionately to the period of which the plant as well| additions have been used. Write up the Plant Account up to March 31, for each year from 2018-19 u20-21. The accounts are closed every year on 31st March.18. Balance of Plant A/c as on March 31, 2021, ₹44,037.? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about A plant is purchased for ₹ 60,000 on 28th June, 2018. Some additions (costing ₹ 3,600) to the plant are madeon 8th Aug., 2019 and some more additions (costing ₹3,900) are made on 17th Jan, 2021. Depreciation onthe Diminishing Balance Method is to be written off at 10% in 2018-19 at 15% in 2019-20 and at 20% in2020-21, calculations being made in terms of months proportionately to the period of which the plant as well| additions have been used. Write up the Plant Account up to March 31, for each year from 2018-19 u20-21. The accounts are closed every year on 31st March.18. Balance of Plant A/c as on March 31, 2021, ₹44,037.? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A plant is purchased for ₹ 60,000 on 28th June, 2018. Some additions (costing ₹ 3,600) to the plant are madeon 8th Aug., 2019 and some more additions (costing ₹3,900) are made on 17th Jan, 2021. Depreciation onthe Diminishing Balance Method is to be written off at 10% in 2018-19 at 15% in 2019-20 and at 20% in2020-21, calculations being made in terms of months proportionately to the period of which the plant as well| additions have been used. Write up the Plant Account up to March 31, for each year from 2018-19 u20-21. The accounts are closed every year on 31st March.18. Balance of Plant A/c as on March 31, 2021, ₹44,037.?.
Solutions for A plant is purchased for ₹ 60,000 on 28th June, 2018. Some additions (costing ₹ 3,600) to the plant are madeon 8th Aug., 2019 and some more additions (costing ₹3,900) are made on 17th Jan, 2021. Depreciation onthe Diminishing Balance Method is to be written off at 10% in 2018-19 at 15% in 2019-20 and at 20% in2020-21, calculations being made in terms of months proportionately to the period of which the plant as well| additions have been used. Write up the Plant Account up to March 31, for each year from 2018-19 u20-21. The accounts are closed every year on 31st March.18. Balance of Plant A/c as on March 31, 2021, ₹44,037.? 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 A plant is purchased for ₹ 60,000 on 28th June, 2018. Some additions (costing ₹ 3,600) to the plant are madeon 8th Aug., 2019 and some more additions (costing ₹3,900) are made on 17th Jan, 2021. Depreciation onthe Diminishing Balance Method is to be written off at 10% in 2018-19 at 15% in 2019-20 and at 20% in2020-21, calculations being made in terms of months proportionately to the period of which the plant as well| additions have been used. Write up the Plant Account up to March 31, for each year from 2018-19 u20-21. The accounts are closed every year on 31st March.18. Balance of Plant A/c as on March 31, 2021, ₹44,037.? defined & explained in the simplest way possible. Besides giving the explanation of A plant is purchased for ₹ 60,000 on 28th June, 2018. Some additions (costing ₹ 3,600) to the plant are madeon 8th Aug., 2019 and some more additions (costing ₹3,900) are made on 17th Jan, 2021. Depreciation onthe Diminishing Balance Method is to be written off at 10% in 2018-19 at 15% in 2019-20 and at 20% in2020-21, calculations being made in terms of months proportionately to the period of which the plant as well| additions have been used. Write up the Plant Account up to March 31, for each year from 2018-19 u20-21. The accounts are closed every year on 31st March.18. Balance of Plant A/c as on March 31, 2021, ₹44,037.?, a detailed solution for A plant is purchased for ₹ 60,000 on 28th June, 2018. Some additions (costing ₹ 3,600) to the plant are madeon 8th Aug., 2019 and some more additions (costing ₹3,900) are made on 17th Jan, 2021. Depreciation onthe Diminishing Balance Method is to be written off at 10% in 2018-19 at 15% in 2019-20 and at 20% in2020-21, calculations being made in terms of months proportionately to the period of which the plant as well| additions have been used. Write up the Plant Account up to March 31, for each year from 2018-19 u20-21. The accounts are closed every year on 31st March.18. Balance of Plant A/c as on March 31, 2021, ₹44,037.? has been provided alongside types of A plant is purchased for ₹ 60,000 on 28th June, 2018. Some additions (costing ₹ 3,600) to the plant are madeon 8th Aug., 2019 and some more additions (costing ₹3,900) are made on 17th Jan, 2021. Depreciation onthe Diminishing Balance Method is to be written off at 10% in 2018-19 at 15% in 2019-20 and at 20% in2020-21, calculations being made in terms of months proportionately to the period of which the plant as well| additions have been used. Write up the Plant Account up to March 31, for each year from 2018-19 u20-21. The accounts are closed every year on 31st March.18. Balance of Plant A/c as on March 31, 2021, ₹44,037.? theory, EduRev gives you an ample number of questions to practice A plant is purchased for ₹ 60,000 on 28th June, 2018. Some additions (costing ₹ 3,600) to the plant are madeon 8th Aug., 2019 and some more additions (costing ₹3,900) are made on 17th Jan, 2021. Depreciation onthe Diminishing Balance Method is to be written off at 10% in 2018-19 at 15% in 2019-20 and at 20% in2020-21, calculations being made in terms of months proportionately to the period of which the plant as well| additions have been used. Write up the Plant Account up to March 31, for each year from 2018-19 u20-21. The accounts are closed every year on 31st March.18. Balance of Plant A/c as on March 31, 2021, ₹44,037.? tests, examples and also practice UPSC tests.
Explore Courses for UPSC exam

Top Courses for UPSC

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev