A company purchased plant and machinery for one million, on 1 January 2008. The company uses straight-line depreciation. The company estimates that the plant and machinery will have a useful life of 3 years, after which it may be disposed of for RS 100,000. What was the net book value of the plant and machinery at 31 December 2009? *

A company purchased plant and machinery for one million, on 1 January 2008. The company uses straight-line depreciation. The company estimates that the plant and machinery will have a useful life of 3 years, after which it may be disposed of for RS 100,000. What was the net book value of the plant and machinery at 31 December 2009? *

Name: A company purchased plant and machinery for one million, on 1 January
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: A company purchased plant and machinery for one million, on 1 January 2008. The companyuses straight-line depreciation. The company estimates that the plant and machinery will have auseful life of 3 years, after which it may be disposed of for RS 10

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Reliance Limited writes off depreciation on Plant and Machinery at 10% per annum on the reducing balance method. On 1st January 2016, the plant and machinery account showed a balance of Rs. 298,000. It was discovered in 2016: a) Repairs effected on the plant on 30th June 2014 were debited to Plant and Machinery Account. The amount was Rs. 30,000. b) A Machinery costing Rs. 12,000 was entered in the purchases Book on 1st October 2014. The expenses of installation Rs. 80 were debited to General Expenses Account. Necessary corrections were made on 1st January 2016. c) During the year on 30th June, a machinery which had cost of Rs. 40,000 on 1st January 2014 was sold for Rs. 30,000 and a new machine costing Rs. 60,000 was installed on the same date, the erection expenses being Rs. 1000. Show the Plant and Machinery Account for the year 2016. Show your working in detail.
Atlas Painting purchased a new machine on October 1, 2020, at a cost of £90,000. The company estimated that the machine will have a residual value of £4,000. The machine is expected to be used for 10‐year life.Instructions:Compute the depreciation expense under straight-line for the year ended December 31st :- 2020 and -2021.
On 1 July 20X7 Brown Ltd bought a machine for GHS 48,000. The machine was depreciated at 25% per annum on a straight-line basis until 30 June 20X9. On 1 July 20X9, the machine was revalued to GHS 30,000. Brown Ltd considers that its remaining useful life is three years. According to IAS 16 Property, Plant and Equipment, what should be the depreciation charge for the year ended 30 June 20Y0 and the balance on the revaluation surplus as at 30 June 20Y0? (Ignore any transfer of excess depreciation.) Depreciation charge Revaluation surplus A GHS 8,000 GHS 4,000 B GHS 8,000 GHS 6,000 C GHS 10,000 GHS 6,000 D GHS 10,000 GHS 4,000
Haystack company purchased a machine on January 1, 2015 for $48,000. The company estimates that the machine will have a $4,000 salvage value at the end of its 10 year useful life. On September 30, 2019 the machine was sold for a gain of $3,500. What must have been the selling price of the machine?
vardhaman traders purchased a machinery on 4.4.2019 at a price of rs 250000 and paid rs50000 on the carriage of the machinery to bring it to the factory premises. the management decides that charging depreciation as per the wdv method will make more sense. it was decided that – the depreciation would be charged @15% on wdv method the useful life of the machinery is 5 years the machinery has been disposed off at the completion of 3 years at a value of rs200000 required-  discuss the concept of charging depreciation through wdv method. calculate the closing wdv and depreciation for all the first three years. calculate the profit and loss, if any on the disposal of the asset  is this possible for any business entity to change the method of charging depreciation
A store building was constructed on January 2, 2009 with a cost of P570.000. Its estimated useful life is 16 years with scrap value of P70.000 after 16 years. In January, 2014 replacement of some worn-out parts of the building costing P50,000 was spent. After the repairs, the building was appraised with a fair market value of P770,000. The allowable deduction for depreciation for the year 2014 is:
Awni Company purchased a new machine on May 1, 2010 for € 44,000. At the time of acquisition, the machine was estimated to have a useful life of ten years and an estimated salvage value of € 2,000 The company has recorded monthly depreciation using the straight - line method. On March 1, 2019, the machine was sold for € 6,000. What should be the loss recognized from the sale of the machine?
A store building was constructed on January 2, 2009 with a cost of P570,000. Its estimated useful life is 16 years with scrap value of P70,000 after 16 years. In January, 2014 replacement of some worn-out parts of the building costing P50,000 was spent. After the repairs, the building was appraised with a fair market value of P770,000. The allowable deduction for depreciation for the year 2014 is:
On January 1, 2014, Barbed Company purchased an equipment for P900,000, with an estimated useful life of 8 years. Straight-line method of depreciation is to be used with no salvage value. On January 1, 2017, the equipment was tested for impairment. The estimated selling price of the equipment is P550,000 and the estimated cost to sell is P30,000. The asset is expected to provide annual net cash inflows of P145,000 during the remaining useful life of the equipment and estimated a residual value of P35,000 at the end of its useful life. The appropriate pre-tax discount rate that reflects current market assessments of the time value of money is 12%. 26) How much is the recoverable value of the equipment on January 1, 2017? A 520,000 C. 550,000 . B. 542,570 D. 562,500 27) How much is the impairment loss to be recognized on January 1, 2017? A. 12,500 C. 19,930 B. 42,500 D. 0 28) How much is the depreciation expense for the year 2017? A. 108,514 C. 103,000 B. 101,514 D. 112,500