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Mohan purchased a machinery amounting Rs. 10,00,000 on 1st April, 2000. On 31st March, 2006 The similar machinery could be purchased for Rs. 20,00,000 but the realizable value of the machinery (purchased on 1.4.2000) was estimated at Rs. 15,00,000. The present discounted value of the future net cash inflows that the machinery was expected to generate in the normal course of business, was calculated as Rs. 12,00,000.
 
Q.The present value of machinery is
  • a)
    Rs. 10,00,000.
  • b)
    Rs. 20,00,000.
  • c)
    Rs. 15,00,000.
  • d)
    Rs. 12,00,000.
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Mohan purchased a machinery amounting Rs. 10,00,000 on 1st April, 2000...
Option D is correct beacouse it is calculated by the business. According to the conservatism concept we calculate maximum loss not profit.
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Mohan purchased a machinery amounting Rs. 10,00,000 on 1st April, 2000. On 31st March, 2006 The similar machinery could be purchased for Rs. 20,00,000 but the realizable value of the machinery (purchased on 1.4.2000) was estimated at Rs. 15,00,000. The present discounted value of the future net cash inflows that the machinery was expected to generate in the normal course of business, was calculated as Rs. 12,00,000.Q.The present value of machinery isa)Rs. 10,00,000.b)Rs. 20,00,000.c)Rs. 15,00,000.d)Rs. 12,00,000.Correct answer is option 'D'. Can you explain this answer?
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Mohan purchased a machinery amounting Rs. 10,00,000 on 1st April, 2000. On 31st March, 2006 The similar machinery could be purchased for Rs. 20,00,000 but the realizable value of the machinery (purchased on 1.4.2000) was estimated at Rs. 15,00,000. The present discounted value of the future net cash inflows that the machinery was expected to generate in the normal course of business, was calculated as Rs. 12,00,000.Q.The present value of machinery isa)Rs. 10,00,000.b)Rs. 20,00,000.c)Rs. 15,00,000.d)Rs. 12,00,000.Correct answer is option 'D'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Mohan purchased a machinery amounting Rs. 10,00,000 on 1st April, 2000. On 31st March, 2006 The similar machinery could be purchased for Rs. 20,00,000 but the realizable value of the machinery (purchased on 1.4.2000) was estimated at Rs. 15,00,000. The present discounted value of the future net cash inflows that the machinery was expected to generate in the normal course of business, was calculated as Rs. 12,00,000.Q.The present value of machinery isa)Rs. 10,00,000.b)Rs. 20,00,000.c)Rs. 15,00,000.d)Rs. 12,00,000.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Mohan purchased a machinery amounting Rs. 10,00,000 on 1st April, 2000. On 31st March, 2006 The similar machinery could be purchased for Rs. 20,00,000 but the realizable value of the machinery (purchased on 1.4.2000) was estimated at Rs. 15,00,000. The present discounted value of the future net cash inflows that the machinery was expected to generate in the normal course of business, was calculated as Rs. 12,00,000.Q.The present value of machinery isa)Rs. 10,00,000.b)Rs. 20,00,000.c)Rs. 15,00,000.d)Rs. 12,00,000.Correct answer is option 'D'. Can you explain this answer?.
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