UPSC Exam > UPSC Questions > Cau u solve this sum with diminishing balance...
Start Learning for Free
Cau u solve this sum with diminishing balance method -
On 1.1.03 the balance of Machinery account was Rs. 48,600. On 1.7.03 a new machine was purchased for Rs. 24,000. The installation cost came to Rs. 1,000. On 1.9.03 an old machine was sold for Rs. 6,000 (the original cost of which was Rs. 10,000 on 1.1.01). Machinery is depreciated at 10% p.a. under the diminishing balance method.
Show Machinery Account for the year 2003. The books are closed on 31st December,every year?
On 1.1.03 the balance of Machinery account was Rs. 48,600. On 1.7.03 a new machine was purchased for Rs. 24,000. The installation cost came to Rs. 1,000. On 1.9.03 an old machine was sold for Rs. 6,000 (the original cost of which was Rs. 10,000 on 1.1.01). Machinery is depreciated at 10% p.a. under the diminishing balance method.
Show Machinery Account for the year 2003. The books are closed on 31st December,every year?
Most Upvoted Answer
Cau u solve this sum with diminishing balance method -On 1.1.03 the ba...
Machinery Account for the Year 2003
To prepare the Machinery Account using the diminishing balance method, we will account for the opening balance, purchases, sales, and depreciation throughout the year.
1. Opening Balance
- On 1.1.03, the balance of the Machinery account was Rs. 48,600.
2. Purchase of New Machine
- A new machine was purchased on 1.7.03 for Rs. 24,000.
- Installation cost was Rs. 1,000.
- Total cost of the new machine = Rs. 24,000 + Rs. 1,000 = Rs. 25,000.
3. Sale of Old Machine
- An old machine was sold on 1.9.03 for Rs. 6,000 (original cost Rs. 10,000).
- Book value is not relevant for depreciation calculation but affects total machinery balance.
4. Depreciation Calculation
- Depreciation on opening balance (Rs. 48,600) for 12 months:
- Depreciation = 10% of Rs. 48,600 = Rs. 4,860.
- Depreciation on new machine (Rs. 25,000) for 6 months:
- Depreciation = 10% of Rs. 25,000 * (6/12) = Rs. 1,250.
- Total Depreciation for the year = Rs. 4,860 + Rs. 1,250 = Rs. 6,110.
5. Closing Balance Calculation
- Total Machinery at the beginning = Rs. 48,600.
- Add new machine cost = Rs. 25,000.
- Subtract sale value of old machine = Rs. 6,000.
- Less total depreciation = Rs. 6,110.
- Closing Balance = (Rs. 48,600 + Rs. 25,000 - Rs. 6,000 - Rs. 6,110) = Rs. 61,490.
6. Machinery Account Summary
| Date | Particulars | Amount (Rs.) |
|------------|---------------------|---------------|
| 1.1.03 | Opening Balance | 48,600 |
| 1.7.03 | New Machine Purchase | 25,000 |
| 1.9.03 | Sale of Old Machine | (6,000) |
| | Total | 67,600 |
| | Less: Depreciation | (6,110) |
| | Closing Balance | 61,490 |
This concludes the Machinery Account for the year 2003, reflecting the transactions and depreciation accurately.
To prepare the Machinery Account using the diminishing balance method, we will account for the opening balance, purchases, sales, and depreciation throughout the year.
1. Opening Balance
- On 1.1.03, the balance of the Machinery account was Rs. 48,600.
2. Purchase of New Machine
- A new machine was purchased on 1.7.03 for Rs. 24,000.
- Installation cost was Rs. 1,000.
- Total cost of the new machine = Rs. 24,000 + Rs. 1,000 = Rs. 25,000.
3. Sale of Old Machine
- An old machine was sold on 1.9.03 for Rs. 6,000 (original cost Rs. 10,000).
- Book value is not relevant for depreciation calculation but affects total machinery balance.
4. Depreciation Calculation
- Depreciation on opening balance (Rs. 48,600) for 12 months:
- Depreciation = 10% of Rs. 48,600 = Rs. 4,860.
- Depreciation on new machine (Rs. 25,000) for 6 months:
- Depreciation = 10% of Rs. 25,000 * (6/12) = Rs. 1,250.
- Total Depreciation for the year = Rs. 4,860 + Rs. 1,250 = Rs. 6,110.
5. Closing Balance Calculation
- Total Machinery at the beginning = Rs. 48,600.
- Add new machine cost = Rs. 25,000.
- Subtract sale value of old machine = Rs. 6,000.
- Less total depreciation = Rs. 6,110.
- Closing Balance = (Rs. 48,600 + Rs. 25,000 - Rs. 6,000 - Rs. 6,110) = Rs. 61,490.
6. Machinery Account Summary
| Date | Particulars | Amount (Rs.) |
|------------|---------------------|---------------|
| 1.1.03 | Opening Balance | 48,600 |
| 1.7.03 | New Machine Purchase | 25,000 |
| 1.9.03 | Sale of Old Machine | (6,000) |
| | Total | 67,600 |
| | Less: Depreciation | (6,110) |
| | Closing Balance | 61,490 |
This concludes the Machinery Account for the year 2003, reflecting the transactions and depreciation accurately.
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
Cau u solve this sum with diminishing balance method -On 1.1.03 the balance of Machinery account was Rs. 48,600. On 1.7.03 a new machine was purchased for Rs. 24,000. The installation cost came to Rs. 1,000. On 1.9.03 an old machine was sold for Rs. 6,000 (the original cost of which was Rs. 10,000 on 1.1.01). Machinery is depreciated at 10% p.a. under the diminishing balance method.Show Machinery Account for the year 2003. The books are closed on 31st December,every year?
Question Description
Cau u solve this sum with diminishing balance method -On 1.1.03 the balance of Machinery account was Rs. 48,600. On 1.7.03 a new machine was purchased for Rs. 24,000. The installation cost came to Rs. 1,000. On 1.9.03 an old machine was sold for Rs. 6,000 (the original cost of which was Rs. 10,000 on 1.1.01). Machinery is depreciated at 10% p.a. under the diminishing balance method.Show Machinery Account for the year 2003. The books are closed on 31st December,every year? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Cau u solve this sum with diminishing balance method -On 1.1.03 the balance of Machinery account was Rs. 48,600. On 1.7.03 a new machine was purchased for Rs. 24,000. The installation cost came to Rs. 1,000. On 1.9.03 an old machine was sold for Rs. 6,000 (the original cost of which was Rs. 10,000 on 1.1.01). Machinery is depreciated at 10% p.a. under the diminishing balance method.Show Machinery Account for the year 2003. The books are closed on 31st December,every year? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Cau u solve this sum with diminishing balance method -On 1.1.03 the balance of Machinery account was Rs. 48,600. On 1.7.03 a new machine was purchased for Rs. 24,000. The installation cost came to Rs. 1,000. On 1.9.03 an old machine was sold for Rs. 6,000 (the original cost of which was Rs. 10,000 on 1.1.01). Machinery is depreciated at 10% p.a. under the diminishing balance method.Show Machinery Account for the year 2003. The books are closed on 31st December,every year?.
Cau u solve this sum with diminishing balance method -On 1.1.03 the balance of Machinery account was Rs. 48,600. On 1.7.03 a new machine was purchased for Rs. 24,000. The installation cost came to Rs. 1,000. On 1.9.03 an old machine was sold for Rs. 6,000 (the original cost of which was Rs. 10,000 on 1.1.01). Machinery is depreciated at 10% p.a. under the diminishing balance method.Show Machinery Account for the year 2003. The books are closed on 31st December,every year? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Cau u solve this sum with diminishing balance method -On 1.1.03 the balance of Machinery account was Rs. 48,600. On 1.7.03 a new machine was purchased for Rs. 24,000. The installation cost came to Rs. 1,000. On 1.9.03 an old machine was sold for Rs. 6,000 (the original cost of which was Rs. 10,000 on 1.1.01). Machinery is depreciated at 10% p.a. under the diminishing balance method.Show Machinery Account for the year 2003. The books are closed on 31st December,every year? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Cau u solve this sum with diminishing balance method -On 1.1.03 the balance of Machinery account was Rs. 48,600. On 1.7.03 a new machine was purchased for Rs. 24,000. The installation cost came to Rs. 1,000. On 1.9.03 an old machine was sold for Rs. 6,000 (the original cost of which was Rs. 10,000 on 1.1.01). Machinery is depreciated at 10% p.a. under the diminishing balance method.Show Machinery Account for the year 2003. The books are closed on 31st December,every year?.
Solutions for Cau u solve this sum with diminishing balance method -On 1.1.03 the balance of Machinery account was Rs. 48,600. On 1.7.03 a new machine was purchased for Rs. 24,000. The installation cost came to Rs. 1,000. On 1.9.03 an old machine was sold for Rs. 6,000 (the original cost of which was Rs. 10,000 on 1.1.01). Machinery is depreciated at 10% p.a. under the diminishing balance method.Show Machinery Account for the year 2003. The books are closed on 31st December,every year? 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 Cau u solve this sum with diminishing balance method -On 1.1.03 the balance of Machinery account was Rs. 48,600. On 1.7.03 a new machine was purchased for Rs. 24,000. The installation cost came to Rs. 1,000. On 1.9.03 an old machine was sold for Rs. 6,000 (the original cost of which was Rs. 10,000 on 1.1.01). Machinery is depreciated at 10% p.a. under the diminishing balance method.Show Machinery Account for the year 2003. The books are closed on 31st December,every year? defined & explained in the simplest way possible. Besides giving the explanation of
Cau u solve this sum with diminishing balance method -On 1.1.03 the balance of Machinery account was Rs. 48,600. On 1.7.03 a new machine was purchased for Rs. 24,000. The installation cost came to Rs. 1,000. On 1.9.03 an old machine was sold for Rs. 6,000 (the original cost of which was Rs. 10,000 on 1.1.01). Machinery is depreciated at 10% p.a. under the diminishing balance method.Show Machinery Account for the year 2003. The books are closed on 31st December,every year?, a detailed solution for Cau u solve this sum with diminishing balance method -On 1.1.03 the balance of Machinery account was Rs. 48,600. On 1.7.03 a new machine was purchased for Rs. 24,000. The installation cost came to Rs. 1,000. On 1.9.03 an old machine was sold for Rs. 6,000 (the original cost of which was Rs. 10,000 on 1.1.01). Machinery is depreciated at 10% p.a. under the diminishing balance method.Show Machinery Account for the year 2003. The books are closed on 31st December,every year? has been provided alongside types of Cau u solve this sum with diminishing balance method -On 1.1.03 the balance of Machinery account was Rs. 48,600. On 1.7.03 a new machine was purchased for Rs. 24,000. The installation cost came to Rs. 1,000. On 1.9.03 an old machine was sold for Rs. 6,000 (the original cost of which was Rs. 10,000 on 1.1.01). Machinery is depreciated at 10% p.a. under the diminishing balance method.Show Machinery Account for the year 2003. The books are closed on 31st December,every year? theory, EduRev gives you an
ample number of questions to practice Cau u solve this sum with diminishing balance method -On 1.1.03 the balance of Machinery account was Rs. 48,600. On 1.7.03 a new machine was purchased for Rs. 24,000. The installation cost came to Rs. 1,000. On 1.9.03 an old machine was sold for Rs. 6,000 (the original cost of which was Rs. 10,000 on 1.1.01). Machinery is depreciated at 10% p.a. under the diminishing balance method.Show Machinery Account for the year 2003. The books are closed on 31st December,every year? 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
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup