Originally posted by : Dinesh S Chawla |
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hey guys what about the stock reserve yaar? and can anyone please elaborate on the Qn 1(c) about depreciation????? |
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THe question regarding deprication was a pretty tough on Question 1(c)
If you guys noticed THe value 560000 was CLOSING VALUE of machinery!!!!!
ANd the loss on exhachange turned out to be 17000.......
THe machine was also PART exchanged so the owner paid an extra rs 15000 by bank to buy the new machineas old machine is valued at 135000 where as new machine costs 150000.
This is what i did..........
TO BAL b/d |
SAY x |
By Bank(loss on sale) |
17000 |
|
|
By Depriciation(on sold machinery) |
8000 |
To bank
(Part amount paid to puchase
NEw machinery) |
15000 |
By Depriciation(on machinery
newly purchased from 30-9-2010
to 31-3-2011) |
7500 |
|
|
By depriciaton (on opening balance )
(10% of x) |
0.1x |
|
|
By bal c/d |
560000 |
|
|
|
|
|
|
|
|
SO by solving the equation
560000+7500+8000+17000-15000=x-0.1x
577500=0.9x
opening value is 641667
and derpi there on is 64167
m SOOOOOOOOOO confused about this question