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On April 01, 2004 the debit balance of the machinery account of A Ltd. was Rs.5,67,000.
The machine was purchased on April 01, 2002. The company charged depreciation at the rate of 10% per annum under diminishing balance method. On October 01, 2004, the company acquired a new machine at a cost of Rs.60,000 and incurred Rs.6,000 for installation of the new machine. The company decided to change the system of providing depreciation from the diminishing balance method to the straight-line method with retrospective effect from April 01, 2002. The rate of depreciation will remain the same.
The company decided to make necessary adjustments in respect of depreciation due to the change in the method in the year 2004-2005.
The machine was purchased on April 01, 2002. The company charged depreciation at the rate of 10% per annum under diminishing balance method. On October 01, 2004, the company acquired a new machine at a cost of Rs.60,000 and incurred Rs.6,000 for installation of the new machine. The company decided to change the system of providing depreciation from the diminishing balance method to the straight-line method with retrospective effect from April 01, 2002. The rate of depreciation will remain the same.
The company decided to make necessary adjustments in respect of depreciation due to the change in the method in the year 2004-2005.
Depreciation provided in 2002-03 = ______.
- a)Rs. 56,700
- b)Rs. 63,000
- c)Rs. 70,000
- d)Rs. 77,778
Correct answer is option 'C'. Can you explain this answer?
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Verified Answer
On April 01, 2004 the debit balance of the machinery account of A Ltd....
Balance on 1april ,2004is 567000 .
it means that credit balance on 31march ,2004 is also 567000.
let the balance on 1april 2003 be x.
then depreciation will be 10%of x i.e.
10x ÷100= x/10 from this we can understand that x- x/10 =567000 .
here we found thae value of which is 630000.
same process we will follow for the year 2002 to 2003 x-x/10=630000 and value of x is 700000.
so depreciation will be 10% of 7lack that 70000
it means that credit balance on 31march ,2004 is also 567000.
let the balance on 1april 2003 be x.
then depreciation will be 10%of x i.e.
10x ÷100= x/10 from this we can understand that x- x/10 =567000 .
here we found thae value of which is 630000.
same process we will follow for the year 2002 to 2003 x-x/10=630000 and value of x is 700000.
so depreciation will be 10% of 7lack that 70000
Most Upvoted Answer
On April 01, 2004 the debit balance of the machinery account of A Ltd....
Depreciation Calculation:
Diminishing Balance Method:
Depreciation Rate = 10%
Year 1:
Depreciation = 10% * Rs. 5,67,000 = Rs. 56,700
Year 2:
Depreciation = 10% * (Rs. 5,67,000 - Rs. 56,700) = Rs. 51,030
Total Depreciation for 2002-03 = Rs. 56,700 + Rs. 51,030 = Rs. 1,07,730
Straight-line Method:
Depreciation Rate = 10%
Year 1:
Depreciation = (Rs. 5,67,000 - Rs. 60,000 - Rs. 6,000)/3 = Rs. 1,67,000/3 = Rs. 55,667
Year 2:
Depreciation = (Rs. 5,67,000 - Rs. 60,000 - Rs. 6,000 - Rs. 55,667)/3 = Rs. 1,45,333/3 = Rs. 48,444.33
Total Depreciation for 2002-03 = Rs. 55,667 + Rs. 48,444.33 = Rs. 1,04,111.33
Adjustment:
The company decided to change the system of providing depreciation from the diminishing balance method to the straight-line method with retrospective effect from April 01, 2002.
Adjustment for 2002-03:
Depreciation provided under diminishing balance method = Rs. 56,700
Depreciation provided under straight-line method = Rs. 55,667
Adjustment = Rs. 56,700 - Rs. 55,667 = Rs. 1,033 (to be added to the depreciation for 2004-05)
Final Depreciation for 2002-03:
Total Depreciation for 2002-03 under straight-line method = Rs. 1,04,111.33 + Rs. 1,033 = Rs. 1,05,144.33
Therefore, the correct answer is option (c) Rs. 70,000.
Diminishing Balance Method:
Depreciation Rate = 10%
Year 1:
Depreciation = 10% * Rs. 5,67,000 = Rs. 56,700
Year 2:
Depreciation = 10% * (Rs. 5,67,000 - Rs. 56,700) = Rs. 51,030
Total Depreciation for 2002-03 = Rs. 56,700 + Rs. 51,030 = Rs. 1,07,730
Straight-line Method:
Depreciation Rate = 10%
Year 1:
Depreciation = (Rs. 5,67,000 - Rs. 60,000 - Rs. 6,000)/3 = Rs. 1,67,000/3 = Rs. 55,667
Year 2:
Depreciation = (Rs. 5,67,000 - Rs. 60,000 - Rs. 6,000 - Rs. 55,667)/3 = Rs. 1,45,333/3 = Rs. 48,444.33
Total Depreciation for 2002-03 = Rs. 55,667 + Rs. 48,444.33 = Rs. 1,04,111.33
Adjustment:
The company decided to change the system of providing depreciation from the diminishing balance method to the straight-line method with retrospective effect from April 01, 2002.
Adjustment for 2002-03:
Depreciation provided under diminishing balance method = Rs. 56,700
Depreciation provided under straight-line method = Rs. 55,667
Adjustment = Rs. 56,700 - Rs. 55,667 = Rs. 1,033 (to be added to the depreciation for 2004-05)
Final Depreciation for 2002-03:
Total Depreciation for 2002-03 under straight-line method = Rs. 1,04,111.33 + Rs. 1,033 = Rs. 1,05,144.33
Therefore, the correct answer is option (c) Rs. 70,000.
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Community Answer
On April 01, 2004 the debit balance of the machinery account of A Ltd....
Balance on 1april ,2004is 567000 . it means that credit balance on 31march ,2004 is also 567000. let the balance on 1april 2003 be x. then depreciation will be 10%of x i.e. 10x ÷100= x/10 from this we can understand that x- x/10 =567000 . here we found thae value of which is 630000. same process we will follow for the year 2002 to 2003 x-x/10=630000 and value of x is 700000. so depreciation will be 10% of 7lack that 70000
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On April 01, 2004 the debit balance of the machinery account of A Ltd. was Rs.5,67,000.The machine was purchased on April 01, 2002. The company charged depreciation at the rate of 10% per annum under diminishing balance method. On October 01, 2004, the company acquired a new machine at a cost of Rs.60,000 and incurred Rs.6,000 for installation of the new machine. The company decided to change the system of providing depreciation from the diminishing balance method to the straight-line method with retrospective effect from April 01, 2002. The rate of depreciation will remain the same.The company decided to make necessary adjustments in respect of depreciation due to the change in the method in the year 2004-2005.Depreciation provided in 2002-03 = ______.a)Rs. 56,700b)Rs. 63,000c)Rs. 70,000d)Rs. 77,778Correct answer is option 'C'. Can you explain this answer?
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On April 01, 2004 the debit balance of the machinery account of A Ltd. was Rs.5,67,000.The machine was purchased on April 01, 2002. The company charged depreciation at the rate of 10% per annum under diminishing balance method. On October 01, 2004, the company acquired a new machine at a cost of Rs.60,000 and incurred Rs.6,000 for installation of the new machine. The company decided to change the system of providing depreciation from the diminishing balance method to the straight-line method with retrospective effect from April 01, 2002. The rate of depreciation will remain the same.The company decided to make necessary adjustments in respect of depreciation due to the change in the method in the year 2004-2005.Depreciation provided in 2002-03 = ______.a)Rs. 56,700b)Rs. 63,000c)Rs. 70,000d)Rs. 77,778Correct 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 April 01, 2004 the debit balance of the machinery account of A Ltd. was Rs.5,67,000.The machine was purchased on April 01, 2002. The company charged depreciation at the rate of 10% per annum under diminishing balance method. On October 01, 2004, the company acquired a new machine at a cost of Rs.60,000 and incurred Rs.6,000 for installation of the new machine. The company decided to change the system of providing depreciation from the diminishing balance method to the straight-line method with retrospective effect from April 01, 2002. The rate of depreciation will remain the same.The company decided to make necessary adjustments in respect of depreciation due to the change in the method in the year 2004-2005.Depreciation provided in 2002-03 = ______.a)Rs. 56,700b)Rs. 63,000c)Rs. 70,000d)Rs. 77,778Correct 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 April 01, 2004 the debit balance of the machinery account of A Ltd. was Rs.5,67,000.The machine was purchased on April 01, 2002. The company charged depreciation at the rate of 10% per annum under diminishing balance method. On October 01, 2004, the company acquired a new machine at a cost of Rs.60,000 and incurred Rs.6,000 for installation of the new machine. The company decided to change the system of providing depreciation from the diminishing balance method to the straight-line method with retrospective effect from April 01, 2002. The rate of depreciation will remain the same.The company decided to make necessary adjustments in respect of depreciation due to the change in the method in the year 2004-2005.Depreciation provided in 2002-03 = ______.a)Rs. 56,700b)Rs. 63,000c)Rs. 70,000d)Rs. 77,778Correct answer is option 'C'. Can you explain this answer?.
On April 01, 2004 the debit balance of the machinery account of A Ltd. was Rs.5,67,000.The machine was purchased on April 01, 2002. The company charged depreciation at the rate of 10% per annum under diminishing balance method. On October 01, 2004, the company acquired a new machine at a cost of Rs.60,000 and incurred Rs.6,000 for installation of the new machine. The company decided to change the system of providing depreciation from the diminishing balance method to the straight-line method with retrospective effect from April 01, 2002. The rate of depreciation will remain the same.The company decided to make necessary adjustments in respect of depreciation due to the change in the method in the year 2004-2005.Depreciation provided in 2002-03 = ______.a)Rs. 56,700b)Rs. 63,000c)Rs. 70,000d)Rs. 77,778Correct 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 April 01, 2004 the debit balance of the machinery account of A Ltd. was Rs.5,67,000.The machine was purchased on April 01, 2002. The company charged depreciation at the rate of 10% per annum under diminishing balance method. On October 01, 2004, the company acquired a new machine at a cost of Rs.60,000 and incurred Rs.6,000 for installation of the new machine. The company decided to change the system of providing depreciation from the diminishing balance method to the straight-line method with retrospective effect from April 01, 2002. The rate of depreciation will remain the same.The company decided to make necessary adjustments in respect of depreciation due to the change in the method in the year 2004-2005.Depreciation provided in 2002-03 = ______.a)Rs. 56,700b)Rs. 63,000c)Rs. 70,000d)Rs. 77,778Correct 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 April 01, 2004 the debit balance of the machinery account of A Ltd. was Rs.5,67,000.The machine was purchased on April 01, 2002. The company charged depreciation at the rate of 10% per annum under diminishing balance method. On October 01, 2004, the company acquired a new machine at a cost of Rs.60,000 and incurred Rs.6,000 for installation of the new machine. The company decided to change the system of providing depreciation from the diminishing balance method to the straight-line method with retrospective effect from April 01, 2002. The rate of depreciation will remain the same.The company decided to make necessary adjustments in respect of depreciation due to the change in the method in the year 2004-2005.Depreciation provided in 2002-03 = ______.a)Rs. 56,700b)Rs. 63,000c)Rs. 70,000d)Rs. 77,778Correct answer is option 'C'. Can you explain this answer?.
Solutions for On April 01, 2004 the debit balance of the machinery account of A Ltd. was Rs.5,67,000.The machine was purchased on April 01, 2002. The company charged depreciation at the rate of 10% per annum under diminishing balance method. On October 01, 2004, the company acquired a new machine at a cost of Rs.60,000 and incurred Rs.6,000 for installation of the new machine. The company decided to change the system of providing depreciation from the diminishing balance method to the straight-line method with retrospective effect from April 01, 2002. The rate of depreciation will remain the same.The company decided to make necessary adjustments in respect of depreciation due to the change in the method in the year 2004-2005.Depreciation provided in 2002-03 = ______.a)Rs. 56,700b)Rs. 63,000c)Rs. 70,000d)Rs. 77,778Correct answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
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Here you can find the meaning of On April 01, 2004 the debit balance of the machinery account of A Ltd. was Rs.5,67,000.The machine was purchased on April 01, 2002. The company charged depreciation at the rate of 10% per annum under diminishing balance method. On October 01, 2004, the company acquired a new machine at a cost of Rs.60,000 and incurred Rs.6,000 for installation of the new machine. The company decided to change the system of providing depreciation from the diminishing balance method to the straight-line method with retrospective effect from April 01, 2002. The rate of depreciation will remain the same.The company decided to make necessary adjustments in respect of depreciation due to the change in the method in the year 2004-2005.Depreciation provided in 2002-03 = ______.a)Rs. 56,700b)Rs. 63,000c)Rs. 70,000d)Rs. 77,778Correct answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
On April 01, 2004 the debit balance of the machinery account of A Ltd. was Rs.5,67,000.The machine was purchased on April 01, 2002. The company charged depreciation at the rate of 10% per annum under diminishing balance method. On October 01, 2004, the company acquired a new machine at a cost of Rs.60,000 and incurred Rs.6,000 for installation of the new machine. The company decided to change the system of providing depreciation from the diminishing balance method to the straight-line method with retrospective effect from April 01, 2002. The rate of depreciation will remain the same.The company decided to make necessary adjustments in respect of depreciation due to the change in the method in the year 2004-2005.Depreciation provided in 2002-03 = ______.a)Rs. 56,700b)Rs. 63,000c)Rs. 70,000d)Rs. 77,778Correct answer is option 'C'. Can you explain this answer?, a detailed solution for On April 01, 2004 the debit balance of the machinery account of A Ltd. was Rs.5,67,000.The machine was purchased on April 01, 2002. The company charged depreciation at the rate of 10% per annum under diminishing balance method. On October 01, 2004, the company acquired a new machine at a cost of Rs.60,000 and incurred Rs.6,000 for installation of the new machine. The company decided to change the system of providing depreciation from the diminishing balance method to the straight-line method with retrospective effect from April 01, 2002. The rate of depreciation will remain the same.The company decided to make necessary adjustments in respect of depreciation due to the change in the method in the year 2004-2005.Depreciation provided in 2002-03 = ______.a)Rs. 56,700b)Rs. 63,000c)Rs. 70,000d)Rs. 77,778Correct answer is option 'C'. Can you explain this answer? has been provided alongside types of On April 01, 2004 the debit balance of the machinery account of A Ltd. was Rs.5,67,000.The machine was purchased on April 01, 2002. The company charged depreciation at the rate of 10% per annum under diminishing balance method. On October 01, 2004, the company acquired a new machine at a cost of Rs.60,000 and incurred Rs.6,000 for installation of the new machine. The company decided to change the system of providing depreciation from the diminishing balance method to the straight-line method with retrospective effect from April 01, 2002. The rate of depreciation will remain the same.The company decided to make necessary adjustments in respect of depreciation due to the change in the method in the year 2004-2005.Depreciation provided in 2002-03 = ______.a)Rs. 56,700b)Rs. 63,000c)Rs. 70,000d)Rs. 77,778Correct answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice On April 01, 2004 the debit balance of the machinery account of A Ltd. was Rs.5,67,000.The machine was purchased on April 01, 2002. The company charged depreciation at the rate of 10% per annum under diminishing balance method. On October 01, 2004, the company acquired a new machine at a cost of Rs.60,000 and incurred Rs.6,000 for installation of the new machine. The company decided to change the system of providing depreciation from the diminishing balance method to the straight-line method with retrospective effect from April 01, 2002. The rate of depreciation will remain the same.The company decided to make necessary adjustments in respect of depreciation due to the change in the method in the year 2004-2005.Depreciation provided in 2002-03 = ______.a)Rs. 56,700b)Rs. 63,000c)Rs. 70,000d)Rs. 77,778Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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