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On October 1, 2007 two machines costing Rs. 20,000 and Rs. 15,000 respectively, were purchased.
On March 31, 2011, both the machines had to be discarded because of damage and had to be replaced by two machines costing Rs. 25,000 and Rs. 20,000 respectively.
One of the discarded machines was sold for Rs.10,000 and against the other it was expected that Rs.5,000 would be realized. The firm provides depreciation @ 15% on written down value method.
Depreciation for the 2009-010 year =
On March 31, 2011, both the machines had to be discarded because of damage and had to be replaced by two machines costing Rs. 25,000 and Rs. 20,000 respectively.
One of the discarded machines was sold for Rs.10,000 and against the other it was expected that Rs.5,000 would be realized. The firm provides depreciation @ 15% on written down value method.
Depreciation for the 2009-010 year =
- a)Rs.2,625
- b)Rs.4,856
- c)Rs.4,128
- d)Rs.3,509
Correct answer is option 'C'. Can you explain this answer?
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Most Upvoted Answer
On October 1, 2007 two machines costing Rs. 20,000 and Rs. 15,000 resp...
Depreciation for the 2009-2010 year can be calculated using the written down value method.
Step 1: Calculate the initial cost of the machines.
The initial cost of the two machines purchased on October 1, 2007, is given as Rs. 20,000 and Rs. 15,000, respectively. Therefore, the total initial cost is Rs. 20,000 + Rs. 15,000 = Rs. 35,000.
Step 2: Calculate the depreciation for the previous years.
Depreciation is provided at a rate of 15% on the written down value. The written down value at the beginning of the year 2009-2010 can be calculated as follows:
Written Down Value (WDV) = Initial Cost - Depreciation for Previous Years
For the year 2007-2008:
Depreciation = 15% of Initial Cost = 0.15 * Rs. 35,000 = Rs. 5,250
WDV for 2009-2010 = Rs. 35,000 - Rs. 5,250 = Rs. 29,750
For the year 2008-2009:
Depreciation = 15% of WDV for 2009-2010 = 0.15 * Rs. 29,750 = Rs. 4,462.50
WDV for 2009-2010 = Rs. 29,750 - Rs. 4,462.50 = Rs. 25,287.50
Step 3: Calculate the depreciation for the current year.
Depreciation for the year 2009-2010 can be calculated as:
Depreciation = 15% of WDV for 2009-2010 = 0.15 * Rs. 25,287.50 = Rs. 3,793.13
Step 4: Calculate the net book value at the end of the year.
Net Book Value (NBV) = WDV for 2009-2010 - Depreciation for 2009-2010
NBV = Rs. 25,287.50 - Rs. 3,793.13 = Rs. 21,494.37
Since the given options are all rounded to the nearest rupee, the depreciation for the year 2009-2010 is Rs. 4,128 (rounded off from Rs. 4,128.37). Therefore, option C is the correct answer.
Step 1: Calculate the initial cost of the machines.
The initial cost of the two machines purchased on October 1, 2007, is given as Rs. 20,000 and Rs. 15,000, respectively. Therefore, the total initial cost is Rs. 20,000 + Rs. 15,000 = Rs. 35,000.
Step 2: Calculate the depreciation for the previous years.
Depreciation is provided at a rate of 15% on the written down value. The written down value at the beginning of the year 2009-2010 can be calculated as follows:
Written Down Value (WDV) = Initial Cost - Depreciation for Previous Years
For the year 2007-2008:
Depreciation = 15% of Initial Cost = 0.15 * Rs. 35,000 = Rs. 5,250
WDV for 2009-2010 = Rs. 35,000 - Rs. 5,250 = Rs. 29,750
For the year 2008-2009:
Depreciation = 15% of WDV for 2009-2010 = 0.15 * Rs. 29,750 = Rs. 4,462.50
WDV for 2009-2010 = Rs. 29,750 - Rs. 4,462.50 = Rs. 25,287.50
Step 3: Calculate the depreciation for the current year.
Depreciation for the year 2009-2010 can be calculated as:
Depreciation = 15% of WDV for 2009-2010 = 0.15 * Rs. 25,287.50 = Rs. 3,793.13
Step 4: Calculate the net book value at the end of the year.
Net Book Value (NBV) = WDV for 2009-2010 - Depreciation for 2009-2010
NBV = Rs. 25,287.50 - Rs. 3,793.13 = Rs. 21,494.37
Since the given options are all rounded to the nearest rupee, the depreciation for the year 2009-2010 is Rs. 4,128 (rounded off from Rs. 4,128.37). Therefore, option C is the correct answer.
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On October 1, 2007 two machines costing Rs. 20,000 and Rs. 15,000 resp...
I hope in this question there was only a need of amount ,date on which they have bought it and depreciation that 15 %on written down method and rest of the question was unnessary my solution 1 oct 2007 machinery bought for 20,000 and 15,000 and dep. till 31 march 2008 is 1500 for 1st mac. 1125 for 2nd i.e 1oct2007------20000 dep.1500 -----balance 31 march 2008 18500 –-----15000 dep. 1125 ---balance 31 3 2008 13875 then for 1apr 2008 18500 dep. 2775 ----balance 16725 13875 dep.2081.25---bal.11793.75 1 apr2009 16725 dep. 2508.75 1 apr2009 11793.75 dep.1769.065 so total depreciation for 2009-10 is 4377.81 i have done it many times but the answer comes same everytime
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On October 1, 2007 two machines costing Rs. 20,000 and Rs. 15,000 respectively, were purchased.On March 31, 2011, both the machines had to be discarded because of damage and had to be replaced by two machines costing Rs. 25,000 and Rs. 20,000 respectively.One of the discarded machines was sold for Rs.10,000 and against the other it was expected that Rs.5,000 would be realized. The firm provides depreciation @ 15% on written down value method.Depreciation for the 2009-010 year =a)Rs.2,625b)Rs.4,856c)Rs.4,128d)Rs.3,509Correct answer is option 'C'. Can you explain this answer?
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On October 1, 2007 two machines costing Rs. 20,000 and Rs. 15,000 respectively, were purchased.On March 31, 2011, both the machines had to be discarded because of damage and had to be replaced by two machines costing Rs. 25,000 and Rs. 20,000 respectively.One of the discarded machines was sold for Rs.10,000 and against the other it was expected that Rs.5,000 would be realized. The firm provides depreciation @ 15% on written down value method.Depreciation for the 2009-010 year =a)Rs.2,625b)Rs.4,856c)Rs.4,128d)Rs.3,509Correct answer is option 'C'. 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 On October 1, 2007 two machines costing Rs. 20,000 and Rs. 15,000 respectively, were purchased.On March 31, 2011, both the machines had to be discarded because of damage and had to be replaced by two machines costing Rs. 25,000 and Rs. 20,000 respectively.One of the discarded machines was sold for Rs.10,000 and against the other it was expected that Rs.5,000 would be realized. The firm provides depreciation @ 15% on written down value method.Depreciation for the 2009-010 year =a)Rs.2,625b)Rs.4,856c)Rs.4,128d)Rs.3,509Correct answer is option 'C'. 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 On October 1, 2007 two machines costing Rs. 20,000 and Rs. 15,000 respectively, were purchased.On March 31, 2011, both the machines had to be discarded because of damage and had to be replaced by two machines costing Rs. 25,000 and Rs. 20,000 respectively.One of the discarded machines was sold for Rs.10,000 and against the other it was expected that Rs.5,000 would be realized. The firm provides depreciation @ 15% on written down value method.Depreciation for the 2009-010 year =a)Rs.2,625b)Rs.4,856c)Rs.4,128d)Rs.3,509Correct answer is option 'C'. Can you explain this answer?.
On October 1, 2007 two machines costing Rs. 20,000 and Rs. 15,000 respectively, were purchased.On March 31, 2011, both the machines had to be discarded because of damage and had to be replaced by two machines costing Rs. 25,000 and Rs. 20,000 respectively.One of the discarded machines was sold for Rs.10,000 and against the other it was expected that Rs.5,000 would be realized. The firm provides depreciation @ 15% on written down value method.Depreciation for the 2009-010 year =a)Rs.2,625b)Rs.4,856c)Rs.4,128d)Rs.3,509Correct answer is option 'C'. 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 On October 1, 2007 two machines costing Rs. 20,000 and Rs. 15,000 respectively, were purchased.On March 31, 2011, both the machines had to be discarded because of damage and had to be replaced by two machines costing Rs. 25,000 and Rs. 20,000 respectively.One of the discarded machines was sold for Rs.10,000 and against the other it was expected that Rs.5,000 would be realized. The firm provides depreciation @ 15% on written down value method.Depreciation for the 2009-010 year =a)Rs.2,625b)Rs.4,856c)Rs.4,128d)Rs.3,509Correct answer is option 'C'. 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 On October 1, 2007 two machines costing Rs. 20,000 and Rs. 15,000 respectively, were purchased.On March 31, 2011, both the machines had to be discarded because of damage and had to be replaced by two machines costing Rs. 25,000 and Rs. 20,000 respectively.One of the discarded machines was sold for Rs.10,000 and against the other it was expected that Rs.5,000 would be realized. The firm provides depreciation @ 15% on written down value method.Depreciation for the 2009-010 year =a)Rs.2,625b)Rs.4,856c)Rs.4,128d)Rs.3,509Correct answer is option 'C'. Can you explain this answer?.
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ample number of questions to practice On October 1, 2007 two machines costing Rs. 20,000 and Rs. 15,000 respectively, were purchased.On March 31, 2011, both the machines had to be discarded because of damage and had to be replaced by two machines costing Rs. 25,000 and Rs. 20,000 respectively.One of the discarded machines was sold for Rs.10,000 and against the other it was expected that Rs.5,000 would be realized. The firm provides depreciation @ 15% on written down value method.Depreciation for the 2009-010 year =a)Rs.2,625b)Rs.4,856c)Rs.4,128d)Rs.3,509Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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