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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 current cost of the machinery is
- a)Rs. 10,00,000.
- b)Rs. 15,00,000.
- c)Rs. 20,00,000.
- d)Rs. 12,00,000.
Correct answer is option 'C'. Can you explain this answer?
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Most Upvoted Answer
Mohan purchased a machinery amounting Rs. 10,00,000 on 1st April, 2000...
Market value or net realizable value which ever is lower. Future. Value cannot be taken so option c
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Community Answer
Mohan purchased a machinery amounting Rs. 10,00,000 on 1st April, 2000...
Given Information:
- Mohan purchased a machinery worth Rs. 10,00,000 on 1st April 2000.
- On 31st March 2006, the similar machinery could be purchased for Rs. 20,00,000.
- The realizable value of the machinery purchased on 1st April 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.
Explanation:
The current cost of the machinery can be determined by considering the following factors:
1. Historical Cost:
The machinery was purchased by Mohan on 1st April 2000 for Rs. 10,00,000. This is the historical cost or the original cost at which the machinery was acquired.
2. Replacement Cost:
On 31st March 2006, the similar machinery could be purchased for Rs. 20,00,000. This is the replacement cost, which represents the cost of acquiring an identical machinery at the present time.
3. Realizable Value:
The realizable value of the machinery purchased on 1st April 2000 was estimated at Rs. 15,00,000. This represents the estimated amount that could be realized from the sale of the machinery in the market.
4. Present Discounted Value:
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. This represents the present value of the expected cash flows from the machinery, discounted at an appropriate rate.
Conclusion:
Considering the above factors, the current cost of the machinery is determined to be Rs. 20,00,000 (replacement cost). Therefore, the correct answer is option c) Rs. 20,00,000.
- Mohan purchased a machinery worth Rs. 10,00,000 on 1st April 2000.
- On 31st March 2006, the similar machinery could be purchased for Rs. 20,00,000.
- The realizable value of the machinery purchased on 1st April 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.
Explanation:
The current cost of the machinery can be determined by considering the following factors:
1. Historical Cost:
The machinery was purchased by Mohan on 1st April 2000 for Rs. 10,00,000. This is the historical cost or the original cost at which the machinery was acquired.
2. Replacement Cost:
On 31st March 2006, the similar machinery could be purchased for Rs. 20,00,000. This is the replacement cost, which represents the cost of acquiring an identical machinery at the present time.
3. Realizable Value:
The realizable value of the machinery purchased on 1st April 2000 was estimated at Rs. 15,00,000. This represents the estimated amount that could be realized from the sale of the machinery in the market.
4. Present Discounted Value:
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. This represents the present value of the expected cash flows from the machinery, discounted at an appropriate rate.
Conclusion:
Considering the above factors, the current cost of the machinery is determined to be Rs. 20,00,000 (replacement cost). Therefore, the correct answer is option c) Rs. 20,00,000.
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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 current cost of the machinery isa)Rs. 10,00,000.b)Rs. 15,00,000.c)Rs. 20,00,000.d)Rs. 12,00,000.Correct answer is option 'C'. 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 current cost of the machinery isa)Rs. 10,00,000.b)Rs. 15,00,000.c)Rs. 20,00,000.d)Rs. 12,00,000.Correct 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 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 current cost of the machinery isa)Rs. 10,00,000.b)Rs. 15,00,000.c)Rs. 20,00,000.d)Rs. 12,00,000.Correct 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 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 current cost of the machinery isa)Rs. 10,00,000.b)Rs. 15,00,000.c)Rs. 20,00,000.d)Rs. 12,00,000.Correct answer is option 'C'. Can you explain this answer?.
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 current cost of the machinery isa)Rs. 10,00,000.b)Rs. 15,00,000.c)Rs. 20,00,000.d)Rs. 12,00,000.Correct 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 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 current cost of the machinery isa)Rs. 10,00,000.b)Rs. 15,00,000.c)Rs. 20,00,000.d)Rs. 12,00,000.Correct 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 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 current cost of the machinery isa)Rs. 10,00,000.b)Rs. 15,00,000.c)Rs. 20,00,000.d)Rs. 12,00,000.Correct answer is option 'C'. Can you explain this answer?.
Solutions 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 current cost of the machinery isa)Rs. 10,00,000.b)Rs. 15,00,000.c)Rs. 20,00,000.d)Rs. 12,00,000.Correct 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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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 current cost of the machinery isa)Rs. 10,00,000.b)Rs. 15,00,000.c)Rs. 20,00,000.d)Rs. 12,00,000.Correct answer is option 'C'. Can you explain this answer?, a detailed solution 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 current cost of the machinery isa)Rs. 10,00,000.b)Rs. 15,00,000.c)Rs. 20,00,000.d)Rs. 12,00,000.Correct answer is option 'C'. Can you explain this answer? has been provided alongside types of 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 current cost of the machinery isa)Rs. 10,00,000.b)Rs. 15,00,000.c)Rs. 20,00,000.d)Rs. 12,00,000.Correct answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice 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 current cost of the machinery isa)Rs. 10,00,000.b)Rs. 15,00,000.c)Rs. 20,00,000.d)Rs. 12,00,000.Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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