23. Machinery was purchased for Rs. 60,000 on 1.1.90. On 1.1.91 another machine
was purchased for Rs. 1,20,000. On 1.7.1992 one more machine was purchased for
Rs. 60,000 (including the cost of installation of Rs. 3,000) by disposing off the
machinery which was purchased on 1.1.90 for Rs. 21,000. On 1.4.1993, another
machinery was purchased for Rs. 1,50,000 by disposing off the machinery which
was purchased on 1.1.1991 for Rs. 1,05,000. Show the machinery a/c upto 31.12.1993
assuming that the rate of depreciation was @ 10% on diminishing balance method.
(Ans: Loss on sale of Machinery (which was purchased on 1.1.1990)
sold on 1-7 1992 Rs. 25,170; Profit on Machinery sold on 1.4.1993
(purchased on 1.1.1991)
Rs. 10,230; Balance of Machinery A/c on 1.1.1994 Rs. 1,90,050]
Answers
Answer:
The cost of equipment, vehicles, and furniture includes the purchase price, sales taxes, transportation fees, insurance paid to cover the item during shipment, assembly, installation, and all other costs associated with making the item ready for use.
The cost of equipment, vehicles, and furniture includes the purchase price, sales taxes, transportation fees, insurance paid to cover the item during shipment, assembly, installation, and all other costs associated with making the item ready for use.Therefore, in the given question cost of second hand machine includes current repairs and hence, the cost of machine was Rs. (100000 + 10000) = Rs. 110000.
The cost of equipment, vehicles, and furniture includes the purchase price, sales taxes, transportation fees, insurance paid to cover the item during shipment, assembly, installation, and all other costs associated with making the item ready for use.Therefore, in the given question cost of second hand machine includes current repairs and hence, the cost of machine was Rs. (100000 + 10000) = Rs. 110000.(Profit) / Loss on sale of machinery = Cost of asset - Accumulated depreciation - Sales value of asset
The cost of equipment, vehicles, and furniture includes the purchase price, sales taxes, transportation fees, insurance paid to cover the item during shipment, assembly, installation, and all other costs associated with making the item ready for use.Therefore, in the given question cost of second hand machine includes current repairs and hence, the cost of machine was Rs. (100000 + 10000) = Rs. 110000.(Profit) / Loss on sale of machinery = Cost of asset - Accumulated depreciation - Sales value of asset(Profit) / Loss on sale of machinery = Rs. 110000 - Rs. 50000 - Rs. 60000
The cost of equipment, vehicles, and furniture includes the purchase price, sales taxes, transportation fees, insurance paid to cover the item during shipment, assembly, installation, and all other costs associated with making the item ready for use.Therefore, in the given question cost of second hand machine includes current repairs and hence, the cost of machine was Rs. (100000 + 10000) = Rs. 110000.(Profit) / Loss on sale of machinery = Cost of asset - Accumulated depreciation - Sales value of asset(Profit) / Loss on sale of machinery = Rs. 110000 - Rs. 50000 - Rs. 60000(Profit) / Loss on sale of machinery = 0
The cost of equipment, vehicles, and furniture includes the purchase price, sales taxes, transportation fees, insurance paid to cover the item during shipment, assembly, installation, and all other costs associated with making the item ready for use.Therefore, in the given question cost of second hand machine includes current repairs and hence, the cost of machine was Rs. (100000 + 10000) = Rs. 110000.(Profit) / Loss on sale of machinery = Cost of asset - Accumulated depreciation - Sales value of asset(Profit) / Loss on sale of machinery = Rs. 110000 - Rs. 50000 - Rs. 60000(Profit) / Loss on sale of machinery = 0 Therefore, in the above question there is no profit or loss on disposal of asset or machinery.