how to find the value of car? Question from npo

the following question is from npo. Please calculate the closing value of car? Payment for purchase of new car during current year ending 30th sept 2008(less sale proceeds of old car-6000)=25200 car at cost on 1-10-2007=24380 depreciation on car on 1-10-2007=20580 depreciation is to be provided at 15% on car for the whole year Hints: Profit on sale of car =2200 Book value of car 3800
Replies (3)

My dear friend,

You have not mentioned the date & Year of closing value of car and also mention whether you want answer according to income tax or as per accounts

if you mention the above, I think I would help you 

hello sumit

Calculate the value of car as per accounts and the year of closing is 30th sept 2008,its already in my question.

Hello Ravi,

Please see Notes and assumption given below with the solution

Calculation of Closing Stock of Car as on 30-10-2008

Cost of new car                   (25200+6000)        = 31200

Less: Depreciation for 6 months   @ 15%           = 2340

         (i.e. April to September)

Closing Value as on 30 Sep 2008                     =  27960

ASSUMPTIONS:

1 Car is purchased in the month of April 2008 (as you have said during current year)

2  Rs.6000 i.e. sale proceed of old car is also invested in the purchase of new car

 

Note

It is immaterial to say that there is any relation to the old car in the value of closing stock of car because as you have given accumulated depreciation as on 1-10-2007 on old car. It depicts that you have sold that car as on1-10-2007

 

IF YOU ARE NOT SATISFY ANY POINT OF THE ANSWER THEN ASK THE POINT BY GIVING CLEARITY ON THE ASKED POINT.

 

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