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A machine purchased for Rs. 2,50,000 on 1.1.2010. It can produce 30,000 units during its useful life, its estimated scrap value is Rs. 10,000. The pattern of production over the next 4 years is as follows 2010 – 6250 units, 2011-2275 units, 2012-12,000 units, 2013-3452 units, the WDV of the machine after 3rd year will be
- a)Rs. 85,800
- b)Rs. 1,54,200
- c)Rs. 58,158
- d)Rs. 1,91,816.
Correct answer is option 'A'. Can you explain this answer?
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A machine purchased for Rs. 2,50,000 on 1.1.2010. It can produce 30,00...
Calculation of Depreciation
To calculate the depreciation of the machine, we can use the straight-line method. The formula for straight-line depreciation is:
Depreciation expense = (Cost of machine - Scrap value) / Useful life
Given:
Cost of machine = Rs. 2,50,000
Scrap value = Rs. 10,000
Useful life = 30,000 units
Using the formula, we can calculate the depreciation expense per unit:
Depreciation expense per unit = (2,50,000 - 10,000) / 30,000
= 2,40,000 / 30,000
= Rs. 8
Calculation of Accumulated Depreciation
To calculate the accumulated depreciation, we need to multiply the depreciation expense per unit by the number of units produced in each year.
2010:
Depreciation expense = Rs. 8 x 6,250 units = Rs. 50,000
2011:
Depreciation expense = Rs. 8 x 2,275 units = Rs. 18,200
2012:
Depreciation expense = Rs. 8 x 12,000 units = Rs. 96,000
2013:
Depreciation expense = Rs. 8 x 3,452 units = Rs. 27,616
Calculation of Written Down Value (WDV)
The written down value (WDV) of the machine after the third year can be calculated by subtracting the accumulated depreciation from the cost of the machine.
WDV = Cost of machine - Accumulated depreciation
WDV = Rs. 2,50,000 - (Rs. 50,000 + Rs. 18,200 + Rs. 96,000)
= Rs. 2,50,000 - Rs. 1,64,200
= Rs. 85,800
Therefore, the WDV of the machine after the third year is Rs. 85,800. Hence, the correct answer is option 'A'.
To calculate the depreciation of the machine, we can use the straight-line method. The formula for straight-line depreciation is:
Depreciation expense = (Cost of machine - Scrap value) / Useful life
Given:
Cost of machine = Rs. 2,50,000
Scrap value = Rs. 10,000
Useful life = 30,000 units
Using the formula, we can calculate the depreciation expense per unit:
Depreciation expense per unit = (2,50,000 - 10,000) / 30,000
= 2,40,000 / 30,000
= Rs. 8
Calculation of Accumulated Depreciation
To calculate the accumulated depreciation, we need to multiply the depreciation expense per unit by the number of units produced in each year.
2010:
Depreciation expense = Rs. 8 x 6,250 units = Rs. 50,000
2011:
Depreciation expense = Rs. 8 x 2,275 units = Rs. 18,200
2012:
Depreciation expense = Rs. 8 x 12,000 units = Rs. 96,000
2013:
Depreciation expense = Rs. 8 x 3,452 units = Rs. 27,616
Calculation of Written Down Value (WDV)
The written down value (WDV) of the machine after the third year can be calculated by subtracting the accumulated depreciation from the cost of the machine.
WDV = Cost of machine - Accumulated depreciation
WDV = Rs. 2,50,000 - (Rs. 50,000 + Rs. 18,200 + Rs. 96,000)
= Rs. 2,50,000 - Rs. 1,64,200
= Rs. 85,800
Therefore, the WDV of the machine after the third year is Rs. 85,800. Hence, the correct answer is option 'A'.
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A machine purchased for Rs. 2,50,000 on 1.1.2010. It can produce 30,000 units during its useful life, its estimated scrap value is Rs. 10,000. The pattern of production over the next 4 years is as follows 2010 – 6250 units, 2011-2275 units, 2012-12,000 units, 2013-3452 units, the WDV of the machine after 3rd year will bea)Rs. 85,800b)Rs. 1,54,200c)Rs. 58,158d)Rs. 1,91,816.Correct answer is option 'A'. Can you explain this answer?
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A machine purchased for Rs. 2,50,000 on 1.1.2010. It can produce 30,000 units during its useful life, its estimated scrap value is Rs. 10,000. The pattern of production over the next 4 years is as follows 2010 – 6250 units, 2011-2275 units, 2012-12,000 units, 2013-3452 units, the WDV of the machine after 3rd year will bea)Rs. 85,800b)Rs. 1,54,200c)Rs. 58,158d)Rs. 1,91,816.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 A machine purchased for Rs. 2,50,000 on 1.1.2010. It can produce 30,000 units during its useful life, its estimated scrap value is Rs. 10,000. The pattern of production over the next 4 years is as follows 2010 – 6250 units, 2011-2275 units, 2012-12,000 units, 2013-3452 units, the WDV of the machine after 3rd year will bea)Rs. 85,800b)Rs. 1,54,200c)Rs. 58,158d)Rs. 1,91,816.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 A machine purchased for Rs. 2,50,000 on 1.1.2010. It can produce 30,000 units during its useful life, its estimated scrap value is Rs. 10,000. The pattern of production over the next 4 years is as follows 2010 – 6250 units, 2011-2275 units, 2012-12,000 units, 2013-3452 units, the WDV of the machine after 3rd year will bea)Rs. 85,800b)Rs. 1,54,200c)Rs. 58,158d)Rs. 1,91,816.Correct answer is option 'A'. Can you explain this answer?.
A machine purchased for Rs. 2,50,000 on 1.1.2010. It can produce 30,000 units during its useful life, its estimated scrap value is Rs. 10,000. The pattern of production over the next 4 years is as follows 2010 – 6250 units, 2011-2275 units, 2012-12,000 units, 2013-3452 units, the WDV of the machine after 3rd year will bea)Rs. 85,800b)Rs. 1,54,200c)Rs. 58,158d)Rs. 1,91,816.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 A machine purchased for Rs. 2,50,000 on 1.1.2010. It can produce 30,000 units during its useful life, its estimated scrap value is Rs. 10,000. The pattern of production over the next 4 years is as follows 2010 – 6250 units, 2011-2275 units, 2012-12,000 units, 2013-3452 units, the WDV of the machine after 3rd year will bea)Rs. 85,800b)Rs. 1,54,200c)Rs. 58,158d)Rs. 1,91,816.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 A machine purchased for Rs. 2,50,000 on 1.1.2010. It can produce 30,000 units during its useful life, its estimated scrap value is Rs. 10,000. The pattern of production over the next 4 years is as follows 2010 – 6250 units, 2011-2275 units, 2012-12,000 units, 2013-3452 units, the WDV of the machine after 3rd year will bea)Rs. 85,800b)Rs. 1,54,200c)Rs. 58,158d)Rs. 1,91,816.Correct answer is option 'A'. Can you explain this answer?.
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