Urgent

Q1. An assets has useful life of 4 years. It is Depreacited by WDV. method its book value at the end of 4 year is 24% of its original cost have, hence tha rates of depreciation will be applied.

Q2.  X & Y entered in to Joint Venture Profit Ration Equally. X  Provides goods from his stock Rs. 20000/- and he pay expenses amounting to Z Rs. 20,000/-. Y incurs further expenses on carriage for Rs. 3000/-., he recevied Cash Sale for Rs. 35000/- he also takes our goods to the value of Rs. 5000/- what will be the amount to be remmited by X to Y.

Q3.  What stock valuation method best matches the Cost of Goods Sold with current replacement Cost.  LIFO or FIFO.

Replies (8)

1. For ur first Q, the answer is 30%

3. Answer for LIFO method

2. Answer for 2nd Q,

If X has spent all the amount, except for Rs. 3000... While, Y has recd goods of Rs. 5000 and as well as cash from SALES....

 

So, i think its Y who will remmit the amount and not X...

 

 

Moreover, goods costing Rs. 5000 are taken away by Y. So, profit is Rs. 20000 (35000 - 15000), less : Rs. 23000 expenses (20000 by X to Z and 3000 by Y for carriage)....

 

So, net loss is Rs. 3000, i.e 1:1 to X & Y, so loss distributed is Rs. 1500...

 

 

REMITTANCE PART goes in this way :

 

Amount Payable by Y :

35000 (cash recd for sales) + 5000 (goods taken over) - 1500 (loss)

= Rs. 38500/-

 

Amount recievalbe by X :

20000 (cost of goods) + 20000 (expenses paid to Z) - 1500 (loss)

= Rs. 38500/-

I am agree

Y will pay X rs.38500

thanks and How is 30% pleaes provide working note

The Date Of Depreciation Will be 30% .Working is as follows:

Let Cost = Rs.100

Let Rate = x%

Depreciation=100-24=Rs.76

ATQ

100*(100-x)/100*(100-x)/100*(100-x)/100=76

Solved This And your answer will be 30%

 

Thanks Manish.

Dhiraj is right.

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