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A company purchased a machine on 1/4/00 at Rs. 3,10,000. Its working life is estimated to be 15 years and the residual value is estimated as Rs. 10,000. The company charged depreciation on straight line basis till 31/3/10. On 1/4/10, the technology expert recommend that the asset may be used for another 10 years. Residual value of the machine remains unchanged. What would be the amount of annual depreciation from the accounting year 2010-11 following the relevant accounting standard:
- a)Rs. 10,000
- b)Rs. 20,000
- c)Rs. 11,000
- d)Rs. 21,000
Correct answer is option 'A'. Can you explain this answer?
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Most Upvoted Answer
A company purchased a machine on 1/4/00 at Rs. 3,10,000. Its working l...
Solution:
Given:
Cost of machine = Rs. 3,10,000
Residual value = Rs. 10,000
Working life = 15 years
Depreciation charged till 31/3/10 is for 10 years (2000-01 to 2009-10)
Depreciation charged for 10 years = (Cost of machine – Residual value)/Working life
= (3,10,000 – 10,000)/15
= Rs. 20,000 per year
On 1/4/10, the technology expert recommended that the asset may be used for another 10 years. Residual value of the machine remains unchanged.
Therefore, the remaining useful life of the asset = 10 years
Amount of annual depreciation from the accounting year 2010-11 following the relevant accounting standard:
Depreciation charged for 10 years = (Cost of machine – Residual value)/Working life
= (3,10,000 – 10,000)/10
= Rs. 30,000 per year
But the depreciation charged till 31/3/10 is already Rs. 20,000 per year. Therefore, the remaining depreciation to be charged is Rs. 10,000 per year.
Hence, the amount of annual depreciation from the accounting year 2010-11 following the relevant accounting standard is Rs. 10,000.
Therefore, option 'A' is the correct answer.
Given:
Cost of machine = Rs. 3,10,000
Residual value = Rs. 10,000
Working life = 15 years
Depreciation charged till 31/3/10 is for 10 years (2000-01 to 2009-10)
Depreciation charged for 10 years = (Cost of machine – Residual value)/Working life
= (3,10,000 – 10,000)/15
= Rs. 20,000 per year
On 1/4/10, the technology expert recommended that the asset may be used for another 10 years. Residual value of the machine remains unchanged.
Therefore, the remaining useful life of the asset = 10 years
Amount of annual depreciation from the accounting year 2010-11 following the relevant accounting standard:
Depreciation charged for 10 years = (Cost of machine – Residual value)/Working life
= (3,10,000 – 10,000)/10
= Rs. 30,000 per year
But the depreciation charged till 31/3/10 is already Rs. 20,000 per year. Therefore, the remaining depreciation to be charged is Rs. 10,000 per year.
Hence, the amount of annual depreciation from the accounting year 2010-11 following the relevant accounting standard is Rs. 10,000.
Therefore, option 'A' is the correct answer.
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Community Answer
A company purchased a machine on 1/4/00 at Rs. 3,10,000. Its working l...
Depreciation 310000-10000÷15=20000 depriciation for 10 years is 20000×10=200000 value of machinery on 31 march 2010 will be 310000-200000=110000 depreciation for more one year will be 110000-10000 ÷10=10000 i hope u have understood it
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A company purchased a machine on 1/4/00 at Rs. 3,10,000. Its working life is estimated to be 15 years and the residual value is estimated as Rs. 10,000. The company charged depreciation on straight line basis till 31/3/10. On 1/4/10, the technology expert recommend that the asset may be used for another 10 years. Residual value of the machine remains unchanged. What would be the amount of annual depreciation from the accounting year 2010-11 following the relevant accounting standard:a)Rs. 10,000b)Rs. 20,000c)Rs. 11,000d)Rs. 21,000Correct answer is option 'A'. Can you explain this answer?
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A company purchased a machine on 1/4/00 at Rs. 3,10,000. Its working life is estimated to be 15 years and the residual value is estimated as Rs. 10,000. The company charged depreciation on straight line basis till 31/3/10. On 1/4/10, the technology expert recommend that the asset may be used for another 10 years. Residual value of the machine remains unchanged. What would be the amount of annual depreciation from the accounting year 2010-11 following the relevant accounting standard:a)Rs. 10,000b)Rs. 20,000c)Rs. 11,000d)Rs. 21,000Correct answer is option 'A'. 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 A company purchased a machine on 1/4/00 at Rs. 3,10,000. Its working life is estimated to be 15 years and the residual value is estimated as Rs. 10,000. The company charged depreciation on straight line basis till 31/3/10. On 1/4/10, the technology expert recommend that the asset may be used for another 10 years. Residual value of the machine remains unchanged. What would be the amount of annual depreciation from the accounting year 2010-11 following the relevant accounting standard:a)Rs. 10,000b)Rs. 20,000c)Rs. 11,000d)Rs. 21,000Correct answer is option 'A'. 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 A company purchased a machine on 1/4/00 at Rs. 3,10,000. Its working life is estimated to be 15 years and the residual value is estimated as Rs. 10,000. The company charged depreciation on straight line basis till 31/3/10. On 1/4/10, the technology expert recommend that the asset may be used for another 10 years. Residual value of the machine remains unchanged. What would be the amount of annual depreciation from the accounting year 2010-11 following the relevant accounting standard:a)Rs. 10,000b)Rs. 20,000c)Rs. 11,000d)Rs. 21,000Correct answer is option 'A'. Can you explain this answer?.
A company purchased a machine on 1/4/00 at Rs. 3,10,000. Its working life is estimated to be 15 years and the residual value is estimated as Rs. 10,000. The company charged depreciation on straight line basis till 31/3/10. On 1/4/10, the technology expert recommend that the asset may be used for another 10 years. Residual value of the machine remains unchanged. What would be the amount of annual depreciation from the accounting year 2010-11 following the relevant accounting standard:a)Rs. 10,000b)Rs. 20,000c)Rs. 11,000d)Rs. 21,000Correct answer is option 'A'. 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 A company purchased a machine on 1/4/00 at Rs. 3,10,000. Its working life is estimated to be 15 years and the residual value is estimated as Rs. 10,000. The company charged depreciation on straight line basis till 31/3/10. On 1/4/10, the technology expert recommend that the asset may be used for another 10 years. Residual value of the machine remains unchanged. What would be the amount of annual depreciation from the accounting year 2010-11 following the relevant accounting standard:a)Rs. 10,000b)Rs. 20,000c)Rs. 11,000d)Rs. 21,000Correct answer is option 'A'. 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 A company purchased a machine on 1/4/00 at Rs. 3,10,000. Its working life is estimated to be 15 years and the residual value is estimated as Rs. 10,000. The company charged depreciation on straight line basis till 31/3/10. On 1/4/10, the technology expert recommend that the asset may be used for another 10 years. Residual value of the machine remains unchanged. What would be the amount of annual depreciation from the accounting year 2010-11 following the relevant accounting standard:a)Rs. 10,000b)Rs. 20,000c)Rs. 11,000d)Rs. 21,000Correct answer is option 'A'. Can you explain this answer?.
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A company purchased a machine on 1/4/00 at Rs. 3,10,000. Its working life is estimated to be 15 years and the residual value is estimated as Rs. 10,000. The company charged depreciation on straight line basis till 31/3/10. On 1/4/10, the technology expert recommend that the asset may be used for another 10 years. Residual value of the machine remains unchanged. What would be the amount of annual depreciation from the accounting year 2010-11 following the relevant accounting standard:a)Rs. 10,000b)Rs. 20,000c)Rs. 11,000d)Rs. 21,000Correct answer is option 'A'. Can you explain this answer?, a detailed solution for A company purchased a machine on 1/4/00 at Rs. 3,10,000. Its working life is estimated to be 15 years and the residual value is estimated as Rs. 10,000. The company charged depreciation on straight line basis till 31/3/10. On 1/4/10, the technology expert recommend that the asset may be used for another 10 years. Residual value of the machine remains unchanged. What would be the amount of annual depreciation from the accounting year 2010-11 following the relevant accounting standard:a)Rs. 10,000b)Rs. 20,000c)Rs. 11,000d)Rs. 21,000Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of A company purchased a machine on 1/4/00 at Rs. 3,10,000. Its working life is estimated to be 15 years and the residual value is estimated as Rs. 10,000. The company charged depreciation on straight line basis till 31/3/10. On 1/4/10, the technology expert recommend that the asset may be used for another 10 years. Residual value of the machine remains unchanged. What would be the amount of annual depreciation from the accounting year 2010-11 following the relevant accounting standard:a)Rs. 10,000b)Rs. 20,000c)Rs. 11,000d)Rs. 21,000Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice A company purchased a machine on 1/4/00 at Rs. 3,10,000. Its working life is estimated to be 15 years and the residual value is estimated as Rs. 10,000. The company charged depreciation on straight line basis till 31/3/10. On 1/4/10, the technology expert recommend that the asset may be used for another 10 years. Residual value of the machine remains unchanged. What would be the amount of annual depreciation from the accounting year 2010-11 following the relevant accounting standard:a)Rs. 10,000b)Rs. 20,000c)Rs. 11,000d)Rs. 21,000Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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