Commerce Exam > Commerce Questions > Panch Rattan processors purchased a machinery...
Start Learning for Free
Panch Rattan processors purchased a machinery at cost os 46000 on 1 January 2013 and incurred 40000 expenses on its puchase and installations.The rate of depreciation under straight line method os 10%p.a.The firm closes its books on 31 March each year. On 1 October 2013 another machine worth 200000 was purchased.?
Most Upvoted Answer
Panch Rattan processors purchased a machinery at cost os 46000 on 1 Ja...
On 1 Jan .to 31 mar.2013.........40,000+46000=86000×10÷100×3÷12=2150........Now on 1oct 2013 once again he purchase for Rs.2,00,000 .2,00,000×10÷100×6÷12=10,000...10,000 +2150=12,150...
Community Answer
Panch Rattan processors purchased a machinery at cost os 46000 on 1 Ja...
Depreciation Calculation for the Machinery:
To calculate the depreciation for the machinery purchased on 1 January 2013, we will use the straight-line method. The formula for straight-line depreciation is:
Depreciation Expense = (Cost of Machinery - Residual Value) / Useful Life
Cost of Machinery: $46,000
Expenses on Purchase and Installation: $40,000
Total Cost of Machinery: $46,000 + $40,000 = $86,000
Useful Life: The useful life of the machinery is not provided in the question, so we will assume it to be 10 years.
Depreciation for the Year 2013:
Depreciation Expense = ($86,000 - $0) / 10 = $8,600
The depreciation expense for the year 2013 is $8,600.
Closing the Books on 31 March:
Since the firm closes its books on 31 March each year, we need to determine the depreciation expense for the period from 1 January 2013 to 31 March 2013.
Time Period: 1 January 2013 to 31 March 2013 (3 months)
Total Depreciation for the Year 2013: $8,600
Depreciation Expense for the Period: ($8,600 / 12) * 3 = $2,150
The depreciation expense for the period from 1 January 2013 to 31 March 2013 is $2,150.
Purchase of Another Machine on 1 October 2013:
On 1 October 2013, Panch Rattan processors purchased another machine worth $200,000. Since the firm closes its books on 31 March, we need to determine the depreciation expense for the period from 1 October 2013 to 31 March 2014.
Time Period: 1 October 2013 to 31 March 2014 (6 months)
Total Depreciation for the New Machine: ($200,000 - $0) / 10 = $20,000
Depreciation Expense for the Period: ($20,000 / 12) * 6 = $10,000
The depreciation expense for the period from 1 October 2013 to 31 March 2014 is $10,000.
Summary:
- The depreciation expense for the machinery purchased on 1 January 2013 is $8,600 for the year 2013.
- The depreciation expense for the period from 1 January 2013 to 31 March 2013 is $2,150.
- The depreciation expense for the new machine purchased on 1 October 2013 is $10,000 for the period from 1 October 2013 to 31 March 2014.
Please note that the calculations assume a straight-line depreciation method and a useful life of 10 years for the machinery. Adjustments may be required if different depreciation methods or useful life are used.
To calculate the depreciation for the machinery purchased on 1 January 2013, we will use the straight-line method. The formula for straight-line depreciation is:
Depreciation Expense = (Cost of Machinery - Residual Value) / Useful Life
Cost of Machinery: $46,000
Expenses on Purchase and Installation: $40,000
Total Cost of Machinery: $46,000 + $40,000 = $86,000
Useful Life: The useful life of the machinery is not provided in the question, so we will assume it to be 10 years.
Depreciation for the Year 2013:
Depreciation Expense = ($86,000 - $0) / 10 = $8,600
The depreciation expense for the year 2013 is $8,600.
Closing the Books on 31 March:
Since the firm closes its books on 31 March each year, we need to determine the depreciation expense for the period from 1 January 2013 to 31 March 2013.
Time Period: 1 January 2013 to 31 March 2013 (3 months)
Total Depreciation for the Year 2013: $8,600
Depreciation Expense for the Period: ($8,600 / 12) * 3 = $2,150
The depreciation expense for the period from 1 January 2013 to 31 March 2013 is $2,150.
Purchase of Another Machine on 1 October 2013:
On 1 October 2013, Panch Rattan processors purchased another machine worth $200,000. Since the firm closes its books on 31 March, we need to determine the depreciation expense for the period from 1 October 2013 to 31 March 2014.
Time Period: 1 October 2013 to 31 March 2014 (6 months)
Total Depreciation for the New Machine: ($200,000 - $0) / 10 = $20,000
Depreciation Expense for the Period: ($20,000 / 12) * 6 = $10,000
The depreciation expense for the period from 1 October 2013 to 31 March 2014 is $10,000.
Summary:
- The depreciation expense for the machinery purchased on 1 January 2013 is $8,600 for the year 2013.
- The depreciation expense for the period from 1 January 2013 to 31 March 2013 is $2,150.
- The depreciation expense for the new machine purchased on 1 October 2013 is $10,000 for the period from 1 October 2013 to 31 March 2014.
Please note that the calculations assume a straight-line depreciation method and a useful life of 10 years for the machinery. Adjustments may be required if different depreciation methods or useful life are used.
Attention Commerce Students!
To make sure you are not studying endlessly, EduRev has designed Commerce study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Commerce.
|
Explore Courses for Commerce exam
|
|
Similar Commerce Doubts
Top Courses for CommerceView all
Panch Rattan processors purchased a machinery at cost os 46000 on 1 January 2013 and incurred 40000 expenses on its puchase and installations.The rate of depreciation under straight line method os 10%p.a.The firm closes its books on 31 March each year. On 1 October 2013 another machine worth 200000 was purchased.?
Question Description
Panch Rattan processors purchased a machinery at cost os 46000 on 1 January 2013 and incurred 40000 expenses on its puchase and installations.The rate of depreciation under straight line method os 10%p.a.The firm closes its books on 31 March each year. On 1 October 2013 another machine worth 200000 was purchased.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Panch Rattan processors purchased a machinery at cost os 46000 on 1 January 2013 and incurred 40000 expenses on its puchase and installations.The rate of depreciation under straight line method os 10%p.a.The firm closes its books on 31 March each year. On 1 October 2013 another machine worth 200000 was purchased.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Panch Rattan processors purchased a machinery at cost os 46000 on 1 January 2013 and incurred 40000 expenses on its puchase and installations.The rate of depreciation under straight line method os 10%p.a.The firm closes its books on 31 March each year. On 1 October 2013 another machine worth 200000 was purchased.?.
Panch Rattan processors purchased a machinery at cost os 46000 on 1 January 2013 and incurred 40000 expenses on its puchase and installations.The rate of depreciation under straight line method os 10%p.a.The firm closes its books on 31 March each year. On 1 October 2013 another machine worth 200000 was purchased.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Panch Rattan processors purchased a machinery at cost os 46000 on 1 January 2013 and incurred 40000 expenses on its puchase and installations.The rate of depreciation under straight line method os 10%p.a.The firm closes its books on 31 March each year. On 1 October 2013 another machine worth 200000 was purchased.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Panch Rattan processors purchased a machinery at cost os 46000 on 1 January 2013 and incurred 40000 expenses on its puchase and installations.The rate of depreciation under straight line method os 10%p.a.The firm closes its books on 31 March each year. On 1 October 2013 another machine worth 200000 was purchased.?.
Solutions for Panch Rattan processors purchased a machinery at cost os 46000 on 1 January 2013 and incurred 40000 expenses on its puchase and installations.The rate of depreciation under straight line method os 10%p.a.The firm closes its books on 31 March each year. On 1 October 2013 another machine worth 200000 was purchased.? in English & in Hindi are available as part of our courses for Commerce.
Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of Panch Rattan processors purchased a machinery at cost os 46000 on 1 January 2013 and incurred 40000 expenses on its puchase and installations.The rate of depreciation under straight line method os 10%p.a.The firm closes its books on 31 March each year. On 1 October 2013 another machine worth 200000 was purchased.? defined & explained in the simplest way possible. Besides giving the explanation of
Panch Rattan processors purchased a machinery at cost os 46000 on 1 January 2013 and incurred 40000 expenses on its puchase and installations.The rate of depreciation under straight line method os 10%p.a.The firm closes its books on 31 March each year. On 1 October 2013 another machine worth 200000 was purchased.?, a detailed solution for Panch Rattan processors purchased a machinery at cost os 46000 on 1 January 2013 and incurred 40000 expenses on its puchase and installations.The rate of depreciation under straight line method os 10%p.a.The firm closes its books on 31 March each year. On 1 October 2013 another machine worth 200000 was purchased.? has been provided alongside types of Panch Rattan processors purchased a machinery at cost os 46000 on 1 January 2013 and incurred 40000 expenses on its puchase and installations.The rate of depreciation under straight line method os 10%p.a.The firm closes its books on 31 March each year. On 1 October 2013 another machine worth 200000 was purchased.? theory, EduRev gives you an
ample number of questions to practice Panch Rattan processors purchased a machinery at cost os 46000 on 1 January 2013 and incurred 40000 expenses on its puchase and installations.The rate of depreciation under straight line method os 10%p.a.The firm closes its books on 31 March each year. On 1 October 2013 another machine worth 200000 was purchased.? tests, examples and also practice Commerce tests.
|
|
Explore Courses for Commerce exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup