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प्रश्न
A manufacturing company purchased on 1st April 2010, a plant and machinery for ₹ 4,50,000 and spent ₹ 50,000 on its installation. After having used it for three years, it was sold for ₹ 3,85,000. Depreciation is to be provided every year at the rate of 15% per annum on the fixed installment method. Accounts are closed on 31st March every year. Calculate profit or loss on sale of machinery.
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उत्तर
Calculation of Profit or Loss on sale of Machinery
| Date | Particulars | ₹ | |
| 01.04.2010 | Plant and machinery purchased | 4,50,000 | |
| 01.04.2010 | Add: Its installation | 50,000 | |
| 01.04.2010 | Original cost | = | 5,00,000 |
| 31.03.2011 | Less: Depreciation @ 15% | = | 75,000 |
| 01.04.2011 | Book Value | = | 4,25,000 |
| 31.03.2012 | Less: Depreciation @ 15% | = | 75,000 |
| 01.04.2012 | Book Value | = | 3,50,000 |
| 31.03.2013 | Less: Depreciation @ 15% | = | 75,000 |
| 01.04.2013 | Book Value | = | 2,75,000 |
Selling price – Book value = Profit
= 3,85,000 – 2,75,000 = 1,10,000
Profit on sale of Machinery is = ₹ 1,10,000.
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संबंधित प्रश्न
Write the word/term/phrase which can substitute the following statement:
The method of depreciation in which the rate of depreciation is fixed but the amount of depreciation reduces every year.
Select the most appropriate answer from the alternatives given below and rewrite the sentence:
Depreciation is charged only on ______ assets.
Complete the following sentence:
______ is the value which an asset realises at the end of its useful life.
Under straight-line method, the amount of depreciation is ______.
Give the formula to find out the amount and rate of depreciation under straight line method of depreciation.
On 1st July 2016 M/s. Ramai & Co. .sold Machinery for ₹ 7,000 the original cost of ₹ 10,000 which was purchased on 18th April 2015. Find out the profit or loss on sale of Machinery by charging depreciation at 10% p.a. on original cost on 31st March every year.
Radhika-Masale’ Amravati purchased a Plant on 1st Jan. 2015 for ₹ 80,000. A new Plant was also purchased
for ₹ 60,000, installation expenses being ₹ 10,000 on 1st April 2016. On 1st Jan 2017, a new Plant was purchased for ₹ 20,000, by disposing of the 1st Plant at ₹ 60,000.
Prepare Plant Account and Depreciation Account for 31st March 2015, 31st March 2016, and 31st March 2017, assuming that the rate of depreciation was @ 10% on Diminishing Balance Method.
Solution:
In the Written Down Value Method, depreciation is calculated on the:
The Revaluation Method is best suited for which type of assets?
Under which method might two identical machines purchased at the same cost show different depreciation expenses in two companies?
