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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 historical cost of machinery is
- a)Rs. 10,00,000.
- b)Rs. 20,00,000.
- c)Rs. 15,00,000.
- d)Rs. 12,00,000.
Correct answer is option 'A'. Can you explain this answer?
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Mohan purchased a machinery amounting Rs. 10,00,000 on 1st April, 2000...
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Mohan purchased a machinery amounting Rs. 10,00,000 on 1st April, 2000...
Historical Cost of Machinery:
The historical cost of the machinery refers to the original purchase price of the machinery when it was acquired by Mohan on 1st April, 2000.
Given Information:
- Mohan purchased the machinery for Rs. 10,00,000 on 1st April, 2000.
- On 31st March, 2006, a similar machinery could be purchased for Rs. 20,00,000.
- 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 was calculated as Rs. 12,00,000.
Calculation:
To determine the historical cost of the machinery, we need to consider the original purchase price, which is Rs. 10,00,000.
Explanation:
- The historical cost of an asset is the amount of cash or cash equivalents paid or the fair value of other consideration given to acquire an asset at the time of its acquisition or construction.
- In this case, the machinery was purchased by Mohan for Rs. 10,00,000 on 1st April, 2000. This is the original purchase price, which represents the historical cost of the machinery.
- The fact that a similar machinery could be purchased for Rs. 20,00,000 on 31st March, 2006 is irrelevant to the determination of the historical cost. It only provides information on the current market value of the machinery, but not the original purchase price.
- The realizable value of the machinery purchased on 1.4.2000 was estimated at Rs. 15,00,000. This value represents the amount that could be realized by selling the machinery in the market at a specific point in time. However, it is not the same as the historical cost.
- The present discounted value of the future net cash inflows that the machinery was expected to generate was calculated as Rs. 12,00,000. This value represents the present value of the expected cash inflows generated by the machinery over its useful life. It is also not the same as the historical cost.
- Therefore, based on the given information, the historical cost of the machinery is Rs. 10,00,000.
The historical cost of the machinery refers to the original purchase price of the machinery when it was acquired by Mohan on 1st April, 2000.
Given Information:
- Mohan purchased the machinery for Rs. 10,00,000 on 1st April, 2000.
- On 31st March, 2006, a similar machinery could be purchased for Rs. 20,00,000.
- 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 was calculated as Rs. 12,00,000.
Calculation:
To determine the historical cost of the machinery, we need to consider the original purchase price, which is Rs. 10,00,000.
Explanation:
- The historical cost of an asset is the amount of cash or cash equivalents paid or the fair value of other consideration given to acquire an asset at the time of its acquisition or construction.
- In this case, the machinery was purchased by Mohan for Rs. 10,00,000 on 1st April, 2000. This is the original purchase price, which represents the historical cost of the machinery.
- The fact that a similar machinery could be purchased for Rs. 20,00,000 on 31st March, 2006 is irrelevant to the determination of the historical cost. It only provides information on the current market value of the machinery, but not the original purchase price.
- The realizable value of the machinery purchased on 1.4.2000 was estimated at Rs. 15,00,000. This value represents the amount that could be realized by selling the machinery in the market at a specific point in time. However, it is not the same as the historical cost.
- The present discounted value of the future net cash inflows that the machinery was expected to generate was calculated as Rs. 12,00,000. This value represents the present value of the expected cash inflows generated by the machinery over its useful life. It is also not the same as the historical cost.
- Therefore, based on the given information, the historical cost of the machinery is Rs. 10,00,000.
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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 historical cost of machinery isa)Rs. 10,00,000.b)Rs. 20,00,000.c)Rs. 15,00,000.d)Rs. 12,00,000.Correct answer is option 'A'. Can you explain this answer?
Question Description
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 historical cost of machinery isa)Rs. 10,00,000.b)Rs. 20,00,000.c)Rs. 15,00,000.d)Rs. 12,00,000.Correct 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 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 historical cost of machinery isa)Rs. 10,00,000.b)Rs. 20,00,000.c)Rs. 15,00,000.d)Rs. 12,00,000.Correct 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 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 historical cost of machinery isa)Rs. 10,00,000.b)Rs. 20,00,000.c)Rs. 15,00,000.d)Rs. 12,00,000.Correct answer is option 'A'. 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 historical cost of machinery isa)Rs. 10,00,000.b)Rs. 20,00,000.c)Rs. 15,00,000.d)Rs. 12,00,000.Correct 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 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 historical cost of machinery isa)Rs. 10,00,000.b)Rs. 20,00,000.c)Rs. 15,00,000.d)Rs. 12,00,000.Correct 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 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 historical cost of machinery isa)Rs. 10,00,000.b)Rs. 20,00,000.c)Rs. 15,00,000.d)Rs. 12,00,000.Correct answer is option 'A'. 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 historical cost of machinery isa)Rs. 10,00,000.b)Rs. 20,00,000.c)Rs. 15,00,000.d)Rs. 12,00,000.Correct answer is option 'A'. 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 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 historical cost of machinery isa)Rs. 10,00,000.b)Rs. 20,00,000.c)Rs. 15,00,000.d)Rs. 12,00,000.Correct answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation 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 historical cost of machinery isa)Rs. 10,00,000.b)Rs. 20,00,000.c)Rs. 15,00,000.d)Rs. 12,00,000.Correct answer is option 'A'. 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 historical cost of machinery isa)Rs. 10,00,000.b)Rs. 20,00,000.c)Rs. 15,00,000.d)Rs. 12,00,000.Correct answer is option 'A'. 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 historical cost of machinery isa)Rs. 10,00,000.b)Rs. 20,00,000.c)Rs. 15,00,000.d)Rs. 12,00,000.Correct answer is option 'A'. 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 historical cost of machinery isa)Rs. 10,00,000.b)Rs. 20,00,000.c)Rs. 15,00,000.d)Rs. 12,00,000.Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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