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In the year 2004- 2005, C Ltd. purchased a new machine and made the following payments in relation to it: 


If depreciation is provided @ 10% p.a. SLM, depreciation for 3rd year is

  • a)
    Rs. 54,000

  • b)
    Rs. 54,500

  • c)
    Rs. 47,000

  • d)
    Rs. 55,000

Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
In the year 2004- 2005, C Ltd. purchased a new machine and made the fo...
The cost of machinery is Cost-dis + 4700000 Delivery +10000 Erection +20000 Charges made to Increase the efficiency +40000 Total 540000
Depreciation @10%=540000×10%=54000 Dep=54000Under slm method dep will be equalTherefore dep for 3rd year is also 54000(Maintananace &insurance expenses ahold not be added)
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Community Answer
In the year 2004- 2005, C Ltd. purchased a new machine and made the fo...
The cost of the machine is calculated as:
  1. Cost after discount: ₹4,70,000
  2. Add delivery charges: ₹10,000
  3. Add erection charges: ₹20,000
  4. Add cost of additional components: ₹40,000
So, the total cost of the machine used for depreciation calculation is:
Total cost = ₹4,70,000 + ₹10,000 + ₹20,000 + ₹40,000 = ₹5,40,000
Note: Annual maintenance and insurance premiums are not included in the machine's cost for depreciation purposes.
Depreciation Calculation (Straight Line Method - SLM):
Depreciation rate = 10%
Depreciation for 3rd year = 10% of ₹5,40,000
Depreciation = ₹5,40,000 × 10% = ₹54,000
The depreciation for the 3rd year is ₹54,000, so the correct answer is: A: ₹54,000.
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In the year 2004- 2005, C Ltd. purchased a new machine and made the following payments in relation to it:If depreciation is provided @ 10% p.a. SLM, depreciation for 3rd year isa)Rs. 54,000b)Rs. 54,500c)Rs. 47,000d)Rs. 55,000Correct answer is option 'A'. Can you explain this answer?
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In the year 2004- 2005, C Ltd. purchased a new machine and made the following payments in relation to it:If depreciation is provided @ 10% p.a. SLM, depreciation for 3rd year isa)Rs. 54,000b)Rs. 54,500c)Rs. 47,000d)Rs. 55,000Correct 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 In the year 2004- 2005, C Ltd. purchased a new machine and made the following payments in relation to it:If depreciation is provided @ 10% p.a. SLM, depreciation for 3rd year isa)Rs. 54,000b)Rs. 54,500c)Rs. 47,000d)Rs. 55,000Correct 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 In the year 2004- 2005, C Ltd. purchased a new machine and made the following payments in relation to it:If depreciation is provided @ 10% p.a. SLM, depreciation for 3rd year isa)Rs. 54,000b)Rs. 54,500c)Rs. 47,000d)Rs. 55,000Correct answer is option 'A'. Can you explain this answer?.
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