UPSC Exam > UPSC Questions > A Machinery was purchased for 40,000 on 1st J...
Start Learning for Free
A Machinery was purchased for 40,000 on 1st Jan, 2009 and spent 4,000 on its erection.
The estimated effective life of the machine is 10 years with break up value of 3,000. Prepare Machinery Account providing Depreciation for 5 years by Fixed Instalment Method.?
The estimated effective life of the machine is 10 years with break up value of 3,000. Prepare Machinery Account providing Depreciation for 5 years by Fixed Instalment Method.?
Most Upvoted Answer
A Machinery was purchased for 40,000 on 1st Jan, 2009 and spent 4,000 ...
Purchase Details
- Machinery Cost: 40,000
- Erection Cost: 4,000
- Total Cost of Machinery: 44,000
- Estimated Life: 10 years
- Break-Up Value: 3,000
Depreciation Calculation
- Depreciable Amount = Total Cost - Break-Up Value
- Depreciable Amount = 44,000 - 3,000 = 41,000
- Annual Depreciation = Depreciable Amount / Effective Life
- Annual Depreciation = 41,000 / 10 = 4,100
Machinery Account for 5 Years
- Yearly Depreciation Entries:
- Year 1 (2009):
- Depreciation Expense: 4,100
- Closing Book Value: 44,000 - 4,100 = 39,900
- Year 2 (2010):
- Depreciation Expense: 4,100
- Closing Book Value: 39,900 - 4,100 = 35,800
- Year 3 (2011):
- Depreciation Expense: 4,100
- Closing Book Value: 35,800 - 4,100 = 31,700
- Year 4 (2012):
- Depreciation Expense: 4,100
- Closing Book Value: 31,700 - 4,100 = 27,600
- Year 5 (2013):
- Depreciation Expense: 4,100
- Closing Book Value: 27,600 - 4,100 = 23,500
Summary of Depreciation
- Total Depreciation over 5 Years:
- 4,100 x 5 = 20,500
- Book Value at End of 5 Years:
- 44,000 - 20,500 = 23,500
This structured approach provides clarity on the machinery account while illustrating the fixed installment method of depreciation across five years.
- Machinery Cost: 40,000
- Erection Cost: 4,000
- Total Cost of Machinery: 44,000
- Estimated Life: 10 years
- Break-Up Value: 3,000
Depreciation Calculation
- Depreciable Amount = Total Cost - Break-Up Value
- Depreciable Amount = 44,000 - 3,000 = 41,000
- Annual Depreciation = Depreciable Amount / Effective Life
- Annual Depreciation = 41,000 / 10 = 4,100
Machinery Account for 5 Years
- Yearly Depreciation Entries:
- Year 1 (2009):
- Depreciation Expense: 4,100
- Closing Book Value: 44,000 - 4,100 = 39,900
- Year 2 (2010):
- Depreciation Expense: 4,100
- Closing Book Value: 39,900 - 4,100 = 35,800
- Year 3 (2011):
- Depreciation Expense: 4,100
- Closing Book Value: 35,800 - 4,100 = 31,700
- Year 4 (2012):
- Depreciation Expense: 4,100
- Closing Book Value: 31,700 - 4,100 = 27,600
- Year 5 (2013):
- Depreciation Expense: 4,100
- Closing Book Value: 27,600 - 4,100 = 23,500
Summary of Depreciation
- Total Depreciation over 5 Years:
- 4,100 x 5 = 20,500
- Book Value at End of 5 Years:
- 44,000 - 20,500 = 23,500
This structured approach provides clarity on the machinery account while illustrating the fixed installment method of depreciation across five years.
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
A Machinery was purchased for 40,000 on 1st Jan, 2009 and spent 4,000 on its erection. The estimated effective life of the machine is 10 years with break up value of 3,000. Prepare Machinery Account providing Depreciation for 5 years by Fixed Instalment Method.?
Question Description
A Machinery was purchased for 40,000 on 1st Jan, 2009 and spent 4,000 on its erection. The estimated effective life of the machine is 10 years with break up value of 3,000. Prepare Machinery Account providing Depreciation for 5 years by Fixed Instalment Method.? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about A Machinery was purchased for 40,000 on 1st Jan, 2009 and spent 4,000 on its erection. The estimated effective life of the machine is 10 years with break up value of 3,000. Prepare Machinery Account providing Depreciation for 5 years by Fixed Instalment Method.? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A Machinery was purchased for 40,000 on 1st Jan, 2009 and spent 4,000 on its erection. The estimated effective life of the machine is 10 years with break up value of 3,000. Prepare Machinery Account providing Depreciation for 5 years by Fixed Instalment Method.?.
A Machinery was purchased for 40,000 on 1st Jan, 2009 and spent 4,000 on its erection. The estimated effective life of the machine is 10 years with break up value of 3,000. Prepare Machinery Account providing Depreciation for 5 years by Fixed Instalment Method.? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about A Machinery was purchased for 40,000 on 1st Jan, 2009 and spent 4,000 on its erection. The estimated effective life of the machine is 10 years with break up value of 3,000. Prepare Machinery Account providing Depreciation for 5 years by Fixed Instalment Method.? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A Machinery was purchased for 40,000 on 1st Jan, 2009 and spent 4,000 on its erection. The estimated effective life of the machine is 10 years with break up value of 3,000. Prepare Machinery Account providing Depreciation for 5 years by Fixed Instalment Method.?.
Solutions for A Machinery was purchased for 40,000 on 1st Jan, 2009 and spent 4,000 on its erection. The estimated effective life of the machine is 10 years with break up value of 3,000. Prepare Machinery Account providing Depreciation for 5 years by Fixed Instalment Method.? 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 Machinery was purchased for 40,000 on 1st Jan, 2009 and spent 4,000 on its erection. The estimated effective life of the machine is 10 years with break up value of 3,000. Prepare Machinery Account providing Depreciation for 5 years by Fixed Instalment Method.? defined & explained in the simplest way possible. Besides giving the explanation of
A Machinery was purchased for 40,000 on 1st Jan, 2009 and spent 4,000 on its erection. The estimated effective life of the machine is 10 years with break up value of 3,000. Prepare Machinery Account providing Depreciation for 5 years by Fixed Instalment Method.?, a detailed solution for A Machinery was purchased for 40,000 on 1st Jan, 2009 and spent 4,000 on its erection. The estimated effective life of the machine is 10 years with break up value of 3,000. Prepare Machinery Account providing Depreciation for 5 years by Fixed Instalment Method.? has been provided alongside types of A Machinery was purchased for 40,000 on 1st Jan, 2009 and spent 4,000 on its erection. The estimated effective life of the machine is 10 years with break up value of 3,000. Prepare Machinery Account providing Depreciation for 5 years by Fixed Instalment Method.? theory, EduRev gives you an
ample number of questions to practice A Machinery was purchased for 40,000 on 1st Jan, 2009 and spent 4,000 on its erection. The estimated effective life of the machine is 10 years with break up value of 3,000. Prepare Machinery Account providing Depreciation for 5 years by Fixed Instalment Method.? 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