Class 11 Exam > Class 11 Questions > An old machinery of book value 40,000 is exch...
Start Learning for Free
An old machinery of book value 40,000 is exchanged for a new machine costing 1,00,000. The old machine is valued 30,000 by goyal stores?
Most Upvoted Answer
An old machinery of book value 40,000 is exchanged for a new machine c...
Explanation:
When an old machinery is exchanged for a new one, it is known as a barter transaction. In this scenario, the old machinery has a book value of 40,000 and is exchanged for a new machine costing 1,00,000. However, Goyal Stores value the old machine at 30,000.
Book Value:
The book value of an asset is the value at which it is recorded in the company's books of accounts. It is calculated as the original cost of the asset minus accumulated depreciation. In this case, the book value of the old machinery is 40,000.
Barter Transaction:
In a barter transaction, one asset is exchanged for another. In this case, the old machinery is exchanged for a new machine costing 1,00,000. The value of the old machine is not equal to the value of the new machine, so there is a difference in value.
Valuation by Goyal Stores:
Goyal Stores value the old machine at 30,000, which is less than its book value of 40,000. This may be because the old machine is not in good condition or is outdated. However, this valuation does not affect the transaction as the exchange is still taking place.
Conclusion:
In conclusion, the old machinery with a book value of 40,000 is exchanged for a new machine costing 1,00,000. The old machine is valued at 30,000 by Goyal Stores, but this does not affect the transaction.
When an old machinery is exchanged for a new one, it is known as a barter transaction. In this scenario, the old machinery has a book value of 40,000 and is exchanged for a new machine costing 1,00,000. However, Goyal Stores value the old machine at 30,000.
Book Value:
The book value of an asset is the value at which it is recorded in the company's books of accounts. It is calculated as the original cost of the asset minus accumulated depreciation. In this case, the book value of the old machinery is 40,000.
Barter Transaction:
In a barter transaction, one asset is exchanged for another. In this case, the old machinery is exchanged for a new machine costing 1,00,000. The value of the old machine is not equal to the value of the new machine, so there is a difference in value.
Valuation by Goyal Stores:
Goyal Stores value the old machine at 30,000, which is less than its book value of 40,000. This may be because the old machine is not in good condition or is outdated. However, this valuation does not affect the transaction as the exchange is still taking place.
Conclusion:
In conclusion, the old machinery with a book value of 40,000 is exchanged for a new machine costing 1,00,000. The old machine is valued at 30,000 by Goyal Stores, but this does not affect the transaction.
Community Answer
An old machinery of book value 40,000 is exchanged for a new machine c...
Machinery A/c Dr 100000
To Old Machinery A/c. 30000
To Cash A/c. 70000
To Old Machinery A/c. 30000
To Cash A/c. 70000
Attention Class 11 Students!
To make sure you are not studying endlessly, EduRev has designed Class 11 study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Class 11.
|
Explore Courses for Class 11 exam
|
|
Similar Class 11 Doubts
Top Courses for Class 11View all
An old machinery of book value 40,000 is exchanged for a new machine costing 1,00,000. The old machine is valued 30,000 by goyal stores?
Question Description
An old machinery of book value 40,000 is exchanged for a new machine costing 1,00,000. The old machine is valued 30,000 by goyal stores? for Class 11 2024 is part of Class 11 preparation. The Question and answers have been prepared according to the Class 11 exam syllabus. Information about An old machinery of book value 40,000 is exchanged for a new machine costing 1,00,000. The old machine is valued 30,000 by goyal stores? covers all topics & solutions for Class 11 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for An old machinery of book value 40,000 is exchanged for a new machine costing 1,00,000. The old machine is valued 30,000 by goyal stores?.
An old machinery of book value 40,000 is exchanged for a new machine costing 1,00,000. The old machine is valued 30,000 by goyal stores? for Class 11 2024 is part of Class 11 preparation. The Question and answers have been prepared according to the Class 11 exam syllabus. Information about An old machinery of book value 40,000 is exchanged for a new machine costing 1,00,000. The old machine is valued 30,000 by goyal stores? covers all topics & solutions for Class 11 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for An old machinery of book value 40,000 is exchanged for a new machine costing 1,00,000. The old machine is valued 30,000 by goyal stores?.
Solutions for An old machinery of book value 40,000 is exchanged for a new machine costing 1,00,000. The old machine is valued 30,000 by goyal stores? in English & in Hindi are available as part of our courses for Class 11.
Download more important topics, notes, lectures and mock test series for Class 11 Exam by signing up for free.
Here you can find the meaning of An old machinery of book value 40,000 is exchanged for a new machine costing 1,00,000. The old machine is valued 30,000 by goyal stores? defined & explained in the simplest way possible. Besides giving the explanation of
An old machinery of book value 40,000 is exchanged for a new machine costing 1,00,000. The old machine is valued 30,000 by goyal stores?, a detailed solution for An old machinery of book value 40,000 is exchanged for a new machine costing 1,00,000. The old machine is valued 30,000 by goyal stores? has been provided alongside types of An old machinery of book value 40,000 is exchanged for a new machine costing 1,00,000. The old machine is valued 30,000 by goyal stores? theory, EduRev gives you an
ample number of questions to practice An old machinery of book value 40,000 is exchanged for a new machine costing 1,00,000. The old machine is valued 30,000 by goyal stores? tests, examples and also practice Class 11 tests.
|
|
Explore Courses for Class 11 exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup