CA Foundation Exam > CA Foundation Questions > Original cost = Rs 1,26,000. Salvage value = ...
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Original cost = Rs 1,26,000. Salvage value = 6,000. Depreciation for 2nd year @ Units of Production Method, if units produced in 2nd year was 5,000 and total estimated production 50,000.
- a)10,800
- b)11,340
- c)12,600
- d)12,000
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
Original cost = Rs 1,26,000. Salvage value = 6,000. Depreciation for 2...
Given:
- Original cost = ₹1,26,000
- Salvage value = ₹6,000
- Units produced in 2nd year = 5,000 units
- Total estimated production = 50,000 units
Step 1: Calculate depreciable amount
Depreciable amount = Original cost - Salvage value
Depreciable amount = ₹1,26,000 − ₹6,000 = ₹1,20,000
Step 2: Calculate depreciation per unit
Step 3: Calculate depreciation for 2nd year
Step 3: Calculate depreciation for 2nd year
Depreciation for 2nd year = Depreciation per unit × Units produced in 2nd year
Depreciation for 2nd year = ₹2.40 × 5,000 = ₹12,000
The depreciation for the 2nd year is ₹12,000, so the correct answer is Option D: ₹12,000.
Most Upvoted Answer
Original cost = Rs 1,26,000. Salvage value = 6,000. Depreciation for 2...
Units of Production Method:
The Units of Production Method is a depreciation method which considers the actual usage of an asset in terms of units produced or hours used. Under this method, the depreciation expense is based on the proportion of actual usage of an asset in a given period to its total estimated usage over its useful life.
Formula:
Depreciation expense = (Actual units produced/Total estimated production) x (Original cost - Salvage value)
Given:
Original cost = Rs 1,26,000
Salvage value = Rs 6,000
Actual units produced in 2nd year = 5,000
Total estimated production = 50,000
Calculation:
Depreciation expense = (Actual units produced/Total estimated production) x (Original cost - Salvage value)
Depreciation expense = (5,000/50,000) x (1,26,000 - 6,000)
Depreciation expense = (1/10) x 1,20,000
Depreciation expense = Rs 12,000
Therefore, the depreciation for the 2nd year using the Units of Production Method is Rs 12,000, which is option D.
The Units of Production Method is a depreciation method which considers the actual usage of an asset in terms of units produced or hours used. Under this method, the depreciation expense is based on the proportion of actual usage of an asset in a given period to its total estimated usage over its useful life.
Formula:
Depreciation expense = (Actual units produced/Total estimated production) x (Original cost - Salvage value)
Given:
Original cost = Rs 1,26,000
Salvage value = Rs 6,000
Actual units produced in 2nd year = 5,000
Total estimated production = 50,000
Calculation:
Depreciation expense = (Actual units produced/Total estimated production) x (Original cost - Salvage value)
Depreciation expense = (5,000/50,000) x (1,26,000 - 6,000)
Depreciation expense = (1/10) x 1,20,000
Depreciation expense = Rs 12,000
Therefore, the depreciation for the 2nd year using the Units of Production Method is Rs 12,000, which is option D.
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Community Answer
Original cost = Rs 1,26,000. Salvage value = 6,000. Depreciation for 2...
Calculate depreciable amount I. e. 126000-6000=120000
now depreciation per annum = 120000/50000=2.4
depreciation per 2nd year = 2.4×5000=12000
now depreciation per annum = 120000/50000=2.4
depreciation per 2nd year = 2.4×5000=12000
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Original cost = Rs 1,26,000. Salvage value = 6,000. Depreciation for 2nd year @ Units of Production Method, if units produced in 2nd year was 5,000 and total estimated production 50,000.a)10,800b)11,340c)12,600d)12,000Correct answer is option 'D'. Can you explain this answer?
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Original cost = Rs 1,26,000. Salvage value = 6,000. Depreciation for 2nd year @ Units of Production Method, if units produced in 2nd year was 5,000 and total estimated production 50,000.a)10,800b)11,340c)12,600d)12,000Correct answer is option 'D'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Original cost = Rs 1,26,000. Salvage value = 6,000. Depreciation for 2nd year @ Units of Production Method, if units produced in 2nd year was 5,000 and total estimated production 50,000.a)10,800b)11,340c)12,600d)12,000Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Original cost = Rs 1,26,000. Salvage value = 6,000. Depreciation for 2nd year @ Units of Production Method, if units produced in 2nd year was 5,000 and total estimated production 50,000.a)10,800b)11,340c)12,600d)12,000Correct answer is option 'D'. Can you explain this answer?.
Original cost = Rs 1,26,000. Salvage value = 6,000. Depreciation for 2nd year @ Units of Production Method, if units produced in 2nd year was 5,000 and total estimated production 50,000.a)10,800b)11,340c)12,600d)12,000Correct answer is option 'D'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Original cost = Rs 1,26,000. Salvage value = 6,000. Depreciation for 2nd year @ Units of Production Method, if units produced in 2nd year was 5,000 and total estimated production 50,000.a)10,800b)11,340c)12,600d)12,000Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Original cost = Rs 1,26,000. Salvage value = 6,000. Depreciation for 2nd year @ Units of Production Method, if units produced in 2nd year was 5,000 and total estimated production 50,000.a)10,800b)11,340c)12,600d)12,000Correct answer is option 'D'. Can you explain this answer?.
Solutions for Original cost = Rs 1,26,000. Salvage value = 6,000. Depreciation for 2nd year @ Units of Production Method, if units produced in 2nd year was 5,000 and total estimated production 50,000.a)10,800b)11,340c)12,600d)12,000Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
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Original cost = Rs 1,26,000. Salvage value = 6,000. Depreciation for 2nd year @ Units of Production Method, if units produced in 2nd year was 5,000 and total estimated production 50,000.a)10,800b)11,340c)12,600d)12,000Correct answer is option 'D'. Can you explain this answer?, a detailed solution for Original cost = Rs 1,26,000. Salvage value = 6,000. Depreciation for 2nd year @ Units of Production Method, if units produced in 2nd year was 5,000 and total estimated production 50,000.a)10,800b)11,340c)12,600d)12,000Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of Original cost = Rs 1,26,000. Salvage value = 6,000. Depreciation for 2nd year @ Units of Production Method, if units produced in 2nd year was 5,000 and total estimated production 50,000.a)10,800b)11,340c)12,600d)12,000Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Original cost = Rs 1,26,000. Salvage value = 6,000. Depreciation for 2nd year @ Units of Production Method, if units produced in 2nd year was 5,000 and total estimated production 50,000.a)10,800b)11,340c)12,600d)12,000Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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