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A firm purchase a second hand machine on 1st April,2018 and paid Rs. 140000 for it. on its over hauling and installation spent Rs. 20000 . on 1st October,218 another machine costing Rs. 80000 was purchased . on 1st October ,2020 the machine purchased on 1st April ,2018 was disposed off for Rs. 104000 and a new machine costing Rs. 200000 was installed. Depreciation was provided @10% per annum ny straight line method.?
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A firm purchase a second hand machine on 1st April,2018 and paid Rs. 1...
Introduction
The depreciation of machines is crucial for understanding their value over time. In this scenario, we analyze the purchase and depreciation of two machines, alongside their disposal and subsequent acquisition of a new machine.
Machine 1: Purchase and Depreciation
- Acquisition Cost: Rs. 140,000
- Overhauling and Installation: Rs. 20,000
- Total Cost: Rs. 160,000
- Depreciation Rate: 10% per annum
- Depreciation Calculation:
- For 2018-2019: Rs. 160,000 * 10% = Rs. 16,000
- For 2019-2020: Rs. 160,000 * 10% = Rs. 16,000
- For 2020-2021 (until disposal on 1st October 2020, 6 months): Rs. 160,000 * 10% * 6/12 = Rs. 8,000
- Total Depreciation for Machine 1: Rs. 16,000 + Rs. 16,000 + Rs. 8,000 = Rs. 40,000
- Book Value at Disposal: Rs. 160,000 - Rs. 40,000 = Rs. 120,000
Machine 2: Purchase and Depreciation
- Acquisition Date: 1st October 2018
- Cost: Rs. 80,000
- Depreciation Calculation:
- For 2018-2019 (6 months): Rs. 80,000 * 10% * 6/12 = Rs. 4,000
- For 2019-2020: Rs. 80,000 * 10% = Rs. 8,000
- For 2020-2021 (until disposal on 1st October 2020, 6 months): Rs. 80,000 * 10% * 6/12 = Rs. 4,000
- Total Depreciation for Machine 2: Rs. 4,000 + Rs. 8,000 + Rs. 4,000 = Rs. 16,000
- Book Value at Disposal: Rs. 80,000 - Rs. 16,000 = Rs. 64,000
New Machine Acquisition
- Purchase Date: 1st October 2020
- Cost: Rs. 200,000
- Depreciation Calculation: For the financial year 2020-2021 (6 months): Rs. 200,000 * 10% * 6/12 = Rs. 10,000
Summary
- Total Depreciation for Machine 1: Rs. 40,000
- Total Depreciation for Machine 2: Rs. 16,000
- Depreciation for New Machine: Rs. 10,000 (for 2020-2021)
This structured approach ensures a clear understanding of the financial implications of purchasing and disposing of machinery in
The depreciation of machines is crucial for understanding their value over time. In this scenario, we analyze the purchase and depreciation of two machines, alongside their disposal and subsequent acquisition of a new machine.
Machine 1: Purchase and Depreciation
- Acquisition Cost: Rs. 140,000
- Overhauling and Installation: Rs. 20,000
- Total Cost: Rs. 160,000
- Depreciation Rate: 10% per annum
- Depreciation Calculation:
- For 2018-2019: Rs. 160,000 * 10% = Rs. 16,000
- For 2019-2020: Rs. 160,000 * 10% = Rs. 16,000
- For 2020-2021 (until disposal on 1st October 2020, 6 months): Rs. 160,000 * 10% * 6/12 = Rs. 8,000
- Total Depreciation for Machine 1: Rs. 16,000 + Rs. 16,000 + Rs. 8,000 = Rs. 40,000
- Book Value at Disposal: Rs. 160,000 - Rs. 40,000 = Rs. 120,000
Machine 2: Purchase and Depreciation
- Acquisition Date: 1st October 2018
- Cost: Rs. 80,000
- Depreciation Calculation:
- For 2018-2019 (6 months): Rs. 80,000 * 10% * 6/12 = Rs. 4,000
- For 2019-2020: Rs. 80,000 * 10% = Rs. 8,000
- For 2020-2021 (until disposal on 1st October 2020, 6 months): Rs. 80,000 * 10% * 6/12 = Rs. 4,000
- Total Depreciation for Machine 2: Rs. 4,000 + Rs. 8,000 + Rs. 4,000 = Rs. 16,000
- Book Value at Disposal: Rs. 80,000 - Rs. 16,000 = Rs. 64,000
New Machine Acquisition
- Purchase Date: 1st October 2020
- Cost: Rs. 200,000
- Depreciation Calculation: For the financial year 2020-2021 (6 months): Rs. 200,000 * 10% * 6/12 = Rs. 10,000
Summary
- Total Depreciation for Machine 1: Rs. 40,000
- Total Depreciation for Machine 2: Rs. 16,000
- Depreciation for New Machine: Rs. 10,000 (for 2020-2021)
This structured approach ensures a clear understanding of the financial implications of purchasing and disposing of machinery in
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A firm purchase a second hand machine on 1st April,2018 and paid Rs. 140000 for it. on its over hauling and installation spent Rs. 20000 . on 1st October,218 another machine costing Rs. 80000 was purchased . on 1st October ,2020 the machine purchased on 1st April ,2018 was disposed off for Rs. 104000 and a new machine costing Rs. 200000 was installed. Depreciation was provided @10% per annum ny straight line method.?
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A firm purchase a second hand machine on 1st April,2018 and paid Rs. 140000 for it. on its over hauling and installation spent Rs. 20000 . on 1st October,218 another machine costing Rs. 80000 was purchased . on 1st October ,2020 the machine purchased on 1st April ,2018 was disposed off for Rs. 104000 and a new machine costing Rs. 200000 was installed. Depreciation was provided @10% per annum ny straight line method.? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about A firm purchase a second hand machine on 1st April,2018 and paid Rs. 140000 for it. on its over hauling and installation spent Rs. 20000 . on 1st October,218 another machine costing Rs. 80000 was purchased . on 1st October ,2020 the machine purchased on 1st April ,2018 was disposed off for Rs. 104000 and a new machine costing Rs. 200000 was installed. Depreciation was provided @10% per annum ny straight line method.? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A firm purchase a second hand machine on 1st April,2018 and paid Rs. 140000 for it. on its over hauling and installation spent Rs. 20000 . on 1st October,218 another machine costing Rs. 80000 was purchased . on 1st October ,2020 the machine purchased on 1st April ,2018 was disposed off for Rs. 104000 and a new machine costing Rs. 200000 was installed. Depreciation was provided @10% per annum ny straight line method.?.
A firm purchase a second hand machine on 1st April,2018 and paid Rs. 140000 for it. on its over hauling and installation spent Rs. 20000 . on 1st October,218 another machine costing Rs. 80000 was purchased . on 1st October ,2020 the machine purchased on 1st April ,2018 was disposed off for Rs. 104000 and a new machine costing Rs. 200000 was installed. Depreciation was provided @10% per annum ny straight line method.? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about A firm purchase a second hand machine on 1st April,2018 and paid Rs. 140000 for it. on its over hauling and installation spent Rs. 20000 . on 1st October,218 another machine costing Rs. 80000 was purchased . on 1st October ,2020 the machine purchased on 1st April ,2018 was disposed off for Rs. 104000 and a new machine costing Rs. 200000 was installed. Depreciation was provided @10% per annum ny straight line method.? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A firm purchase a second hand machine on 1st April,2018 and paid Rs. 140000 for it. on its over hauling and installation spent Rs. 20000 . on 1st October,218 another machine costing Rs. 80000 was purchased . on 1st October ,2020 the machine purchased on 1st April ,2018 was disposed off for Rs. 104000 and a new machine costing Rs. 200000 was installed. Depreciation was provided @10% per annum ny straight line method.?.
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A firm purchase a second hand machine on 1st April,2018 and paid Rs. 140000 for it. on its over hauling and installation spent Rs. 20000 . on 1st October,218 another machine costing Rs. 80000 was purchased . on 1st October ,2020 the machine purchased on 1st April ,2018 was disposed off for Rs. 104000 and a new machine costing Rs. 200000 was installed. Depreciation was provided @10% per annum ny straight line method.?, a detailed solution for A firm purchase a second hand machine on 1st April,2018 and paid Rs. 140000 for it. on its over hauling and installation spent Rs. 20000 . on 1st October,218 another machine costing Rs. 80000 was purchased . on 1st October ,2020 the machine purchased on 1st April ,2018 was disposed off for Rs. 104000 and a new machine costing Rs. 200000 was installed. Depreciation was provided @10% per annum ny straight line method.? has been provided alongside types of A firm purchase a second hand machine on 1st April,2018 and paid Rs. 140000 for it. on its over hauling and installation spent Rs. 20000 . on 1st October,218 another machine costing Rs. 80000 was purchased . on 1st October ,2020 the machine purchased on 1st April ,2018 was disposed off for Rs. 104000 and a new machine costing Rs. 200000 was installed. Depreciation was provided @10% per annum ny straight line method.? theory, EduRev gives you an
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