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Depreciable amount of the machinery is Rs. 11,00,000. The mach ine is expected to produce 30 lakhs units in its 10 year life and expected distribution of production units is as follows: 1-3 year 5 lacs units each year 4-6 year 3 lacs units each year 7-10 year 1.5 lacs units each year. Annual depreciation for 1-3 year, using production units method will be ______
- a)Rs. 1,10,000.
- b)Rs. 55,000.
- c)Rs. 65,000.
- d)Rs. 1,83,333.
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
Depreciable amount of the machinery is Rs. 11,00,000. The mach ine is ...
To calculate the annual depreciation for 1-3 years using the production units method, we first need to determine the depreciation per unit and then multiply it by the number of units produced in each year.
1. Calculate depreciation per unit:
Depreciable amount = Rs. 11,00,000
Total expected production units = 30 lakhs units
Depreciation per unit = Depreciable amount / Total expected production units
Depreciation per unit = Rs. 11,00,000 / 30,00,000 = Rs. 0.3667 (approx.)
2. Calculate annual depreciation for 1-3 years:
According to the given distribution of production units, in the first three years, 5 lakh units are produced each year.
Annual depreciation = Depreciation per unit × Units produced per year
Annual depreciation = Rs. 0.3667 × 5,00,000 = Rs. 1,83,333.33 (approx.)
So, the annual depreciation for 1-3 years using the production units method is:
Rs. 1,83,333
1. Calculate depreciation per unit:
Depreciable amount = Rs. 11,00,000
Total expected production units = 30 lakhs units
Depreciation per unit = Depreciable amount / Total expected production units
Depreciation per unit = Rs. 11,00,000 / 30,00,000 = Rs. 0.3667 (approx.)
2. Calculate annual depreciation for 1-3 years:
According to the given distribution of production units, in the first three years, 5 lakh units are produced each year.
Annual depreciation = Depreciation per unit × Units produced per year
Annual depreciation = Rs. 0.3667 × 5,00,000 = Rs. 1,83,333.33 (approx.)
So, the annual depreciation for 1-3 years using the production units method is:
Rs. 1,83,333
Most Upvoted Answer
Depreciable amount of the machinery is Rs. 11,00,000. The mach ine is ...
Depreciation Calculation using Production Units Method
Given:
Depreciable amount of machinery = Rs. 11,00,000
Expected production units in 10 years = 30,00,000
Expected distribution of production units:
- 1-3 year = 5,00,000 units each year
- 4-6 year = 3,00,000 units each year
- 7-10 year = 1,50,000 units each year
Step 1: Calculate Total Production Units
Total production units = 5,00,000 x 3 + 3,00,000 x 3 + 1,50,000 x 4
Total production units = 30,00,000
Step 2: Calculate Production Units per Year
Production units per year = Total production units / Life in years
Production units per year = 30,00,000 / 10
Production units per year = 3,00,000
Step 3: Calculate Depreciation per Unit
Depreciation per unit = Depreciable amount / Total production units
Depreciation per unit = 11,00,000 / 30,00,000
Depreciation per unit = 0.3667
Step 4: Calculate Annual Depreciation for 1-3 Year
Annual depreciation for 1-3 year = Production units for 1-3 year x Depreciation per unit
Annual depreciation for 1-3 year = 5,00,000 x 0.3667
Annual depreciation for 1-3 year = Rs. 1,83,333
Therefore, the correct answer is option 'D' Rs. 1,83,333.
Given:
Depreciable amount of machinery = Rs. 11,00,000
Expected production units in 10 years = 30,00,000
Expected distribution of production units:
- 1-3 year = 5,00,000 units each year
- 4-6 year = 3,00,000 units each year
- 7-10 year = 1,50,000 units each year
Step 1: Calculate Total Production Units
Total production units = 5,00,000 x 3 + 3,00,000 x 3 + 1,50,000 x 4
Total production units = 30,00,000
Step 2: Calculate Production Units per Year
Production units per year = Total production units / Life in years
Production units per year = 30,00,000 / 10
Production units per year = 3,00,000
Step 3: Calculate Depreciation per Unit
Depreciation per unit = Depreciable amount / Total production units
Depreciation per unit = 11,00,000 / 30,00,000
Depreciation per unit = 0.3667
Step 4: Calculate Annual Depreciation for 1-3 Year
Annual depreciation for 1-3 year = Production units for 1-3 year x Depreciation per unit
Annual depreciation for 1-3 year = 5,00,000 x 0.3667
Annual depreciation for 1-3 year = Rs. 1,83,333
Therefore, the correct answer is option 'D' Rs. 1,83,333.
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Community Answer
Depreciable amount of the machinery is Rs. 11,00,000. The mach ine is ...
Depreciation=. (1100000/3000000)*500000=183333.333
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Depreciable amount of the machinery is Rs. 11,00,000. The mach ine is expected to produce 30 lakhs units in its 10 year life and expected distribution of production units is as follows: 1-3 year 5 lacs units each year 4-6 year 3 lacs units each year 7-10 year 1.5 lacs units each year.Annual depreciation for 1-3 year, using production units method will be ______a)Rs. 1,10,000.b)Rs. 55,000.c)Rs. 65,000.d)Rs. 1,83,333.Correct answer is option 'D'. Can you explain this answer?
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Depreciable amount of the machinery is Rs. 11,00,000. The mach ine is expected to produce 30 lakhs units in its 10 year life and expected distribution of production units is as follows: 1-3 year 5 lacs units each year 4-6 year 3 lacs units each year 7-10 year 1.5 lacs units each year.Annual depreciation for 1-3 year, using production units method will be ______a)Rs. 1,10,000.b)Rs. 55,000.c)Rs. 65,000.d)Rs. 1,83,333.Correct answer is option 'D'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Depreciable amount of the machinery is Rs. 11,00,000. The mach ine is expected to produce 30 lakhs units in its 10 year life and expected distribution of production units is as follows: 1-3 year 5 lacs units each year 4-6 year 3 lacs units each year 7-10 year 1.5 lacs units each year.Annual depreciation for 1-3 year, using production units method will be ______a)Rs. 1,10,000.b)Rs. 55,000.c)Rs. 65,000.d)Rs. 1,83,333.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Depreciable amount of the machinery is Rs. 11,00,000. The mach ine is expected to produce 30 lakhs units in its 10 year life and expected distribution of production units is as follows: 1-3 year 5 lacs units each year 4-6 year 3 lacs units each year 7-10 year 1.5 lacs units each year.Annual depreciation for 1-3 year, using production units method will be ______a)Rs. 1,10,000.b)Rs. 55,000.c)Rs. 65,000.d)Rs. 1,83,333.Correct answer is option 'D'. Can you explain this answer?.
Depreciable amount of the machinery is Rs. 11,00,000. The mach ine is expected to produce 30 lakhs units in its 10 year life and expected distribution of production units is as follows: 1-3 year 5 lacs units each year 4-6 year 3 lacs units each year 7-10 year 1.5 lacs units each year.Annual depreciation for 1-3 year, using production units method will be ______a)Rs. 1,10,000.b)Rs. 55,000.c)Rs. 65,000.d)Rs. 1,83,333.Correct answer is option 'D'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Depreciable amount of the machinery is Rs. 11,00,000. The mach ine is expected to produce 30 lakhs units in its 10 year life and expected distribution of production units is as follows: 1-3 year 5 lacs units each year 4-6 year 3 lacs units each year 7-10 year 1.5 lacs units each year.Annual depreciation for 1-3 year, using production units method will be ______a)Rs. 1,10,000.b)Rs. 55,000.c)Rs. 65,000.d)Rs. 1,83,333.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Depreciable amount of the machinery is Rs. 11,00,000. The mach ine is expected to produce 30 lakhs units in its 10 year life and expected distribution of production units is as follows: 1-3 year 5 lacs units each year 4-6 year 3 lacs units each year 7-10 year 1.5 lacs units each year.Annual depreciation for 1-3 year, using production units method will be ______a)Rs. 1,10,000.b)Rs. 55,000.c)Rs. 65,000.d)Rs. 1,83,333.Correct answer is option 'D'. Can you explain this answer?.
Solutions for Depreciable amount of the machinery is Rs. 11,00,000. The mach ine is expected to produce 30 lakhs units in its 10 year life and expected distribution of production units is as follows: 1-3 year 5 lacs units each year 4-6 year 3 lacs units each year 7-10 year 1.5 lacs units each year.Annual depreciation for 1-3 year, using production units method will be ______a)Rs. 1,10,000.b)Rs. 55,000.c)Rs. 65,000.d)Rs. 1,83,333.Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
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