ans for q2 is cost=20000 dep for first 6 mnts
20000*10%*6/12 = 1000
for next 6 mnts
19300*10%*6/12 = 965
total dep 1965
cost of machine 20500-1965=18535
sry if its wrong
Help
Page no : 2
mounika
(semi qualified chartered accountant)
(981 Points)
Replied 02 June 2011
q2 ans is 18475
20000*10%*6/12=1000
20500*10%*6/12=1025
total dep is 2025
cost of furniture=20500-2025=18475
shakuntala chhangani
(FCA Course co-ordinator WIRC coaching centre)
(2525 Points)
Replied 04 June 2011
Hi, the answer to ur question is :
(1) goodwill is always calculated on the basis of normal profit earning capacity of the business. so calculate it removing all abnormalities. hence answer given by vijay manwani is correct.
(2) calculation of closing WDV :
In this question opening balance asset account will be split into two parts:
not sold/exchanged (20,000 - 1200) = 18,800 used for full year.
sold/exchanged = used for half year (assumed as question is silent about date of exchange)
book value of part exchanged as on 30.6. = 1,200 - dep(1,200 *10% x 6/12) = 1,200 - 60 = 1,140
value of new furniture acquired = 1,140 + 500 = 1,640
now closing balance of EXISTING furniture :
18,800 - dep (18,800 x 10% x 12/12) =18,800-1,880 = 16,920
1,640 - dep. (1,640 x 10% x 6/12) = 1,640 - 82 = 1,558
closing balance of furniture account = 18,478
Regards, CA Shakuntala Chhangani
Ram Kumar Chhetri
(student)
(71 Points)
Replied 04 June 2011
Thanks A lot for detail Answer to CA Shakuntala Chhangani.
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