Mr. A bought a machine for Rs 25,000 on which he spent Rs 5,000for carriage and freight; Rs 1,000 for brokerage of the middleman;Rs 3,500 for installation and Rs 500 for an iron pad. The machine isdepreciated @ 10% every year on a written down basis. After threeyears the machine was sold to Mr. B for Rs 30,500 and Rs 500 waspaid as commission to the broker. Find out the profit or loss on thesale of the machine.

We have given, Machine buying price = ₹25,000Carrying and freight charge = ₹5,000Brokerage =…

Answered: Mr. A bought a machine for Rs 25,000 on…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Similar questions

Kimmy brought a couch worth Php 10,000 and 10 years later, he sold it for Php 8,000. If the depreciation continues at the same rate, how much would be the worth of the couch in four years more?
An appraiser is looking for comparable sales and finds a property that recently sold for $224, 000. She finds that the buyer was able to assume the seller's fully amortizing mortgage, which had monthly payments based on a 7 percent interest. The balance of the loan at the time of sale was $148, 000 with a remaining term of 15 years (monthly payments). The appraiser determines that if a $148, 000 loan was obtained on the same property, monthly payments at the market rate for a 15-year fully amortizing loan would have been 8 percent with no points. Required: a. Assume that the buyer is expected to benefit from the interest savings on the assumable loan for the entire loan term. What is the cash equivalent value of the property? b. What is the cash equivalent value of the property if you assumed that the buyer is only expected to benefit from interest savings for five years because he would probably sell or refinance after five years? Use excel spreadsheet to show work and provideanswer.
Mr. Harrington had a new heating system installed in his office. The balance owing to the heating company is $40,000 which includes equipment and installation fees. The heating company has agreed to let him make individual payments on the account whenever he’d like, but the final balance must be paid two years (24 months) from now. Starting today, interest will accumulate on the balance at 3.45% compounded monthly. Mr. Harrington will make a payment of $8000 4 months from now and $6000 19 months from now. What is the final balance owing on the account in two years (24 months from now)?
The Roths bought a house for $433,900. They paid the sellers a 20% down payment and obtained a simple interest amortized loan for the balance from their bank for the remainder, at 4 7/8% for thirty years. The bank in turn paid the sellers the loan amount, less a 6% sales commission paid to the sellers' and buyers' real estate agents. The bank charged them 2 points plus fees totaling $8,459.46; of these fees, $6,251.28 were included in the finance charge. (a) Find the loan amount. (b) Find the "legal loan amount" –the amount borrowed, according to the Truth in Lending Act. (Round your answer to the nearest cent.)(c) Find the Roth's monthly payment. (Round your answer to the nearest cent.)(d) Find the APR (round to the nearest hundredth of 1%).(e) Find the total interest paid. (Round your answer to the nearest cent.)(f) Find the total finance charge. (Round your answer to the nearest cent.)(g) Find the amount that the sellers are paid for their house.
A machine was purchased at an invoice price of P 300,000, subject to a 2% cash discount if paid within 10-days. Installation of the machine cost, P 5,000. Cost incurred in testing the machine were P 800 for the operator's time and P 1,500 for materials. The discount was lost because of late payment of the invoice. Sales tax on invoice price, 4%, and depreciation during the testing period, P 2,000. The cost that should be recorded for the machine isP 313,300P315,300P 311.000P 306,000
Adebola deliver service uses two delivery vans. Her business policy is to replace the vans every 4 years. One of the vans which was bought 4-years ago at a cost of £12,750, is due for replacement. Adebola depreciates the vans using the reducing balance methods at a rate of 25% per annum. She accepts an offer of £3,650 for the van. What is Adebola’s profit or loss on the sale of the Van after year 4?
Kavita purchased a machine for Rs. 80,000 on 1st April, 2015. She charges depreciation on SLM basis and closes her books on 31st December every year. The machine has a useful life of 8 years after which it can be sold for Rs. 8,000. She purchased another machine on 1st May, 2016 for Rs. 45,000 with 5 years useful life and nil residual value. In 2017, the first machine was sold for Rs. 50,000 on 30th June when a new machine was purchased for Rs. 30,000 with 3 years useful life and Rs. 3,000 as residual value. Prepare the machinery account for the 3 years ending December 31, 2017.
1
Mr. Harrington had a new heating system installed in his office. The balance owing to the heating company is $24,000 which includes equipment and installation fees. The heating company has agreed to let him make individual payments on the account whenever he’d like, but the final balance must be paid two years (24 months) from now. Starting today, interest will accumulate on the balance at 3.80% compounded monthly. Mr. Harrington will make a payment of $7000 4 months from now and $8000 18 months from now. What is the value of i (the periodic interest rate)? a. 0.001583 b. 1.900000 c. 0.009500 d. 0.003167
The Roths bought a house for $438,500. They paid the sellers a 20% down payment and obtained a simple interest amortized loan for the balance from their bank for the remainder, at 0.4875 for thirty years. The bank in turn paid the sellers the loan amount, less a 6% sales commission paid to the sellers' and buyers' real estate agents. The bank charged them 2 points plus fees totaling $8,549.15; of these fees, $6,317.55 were included in the finance charge. (a) Find the loan amount (b) Find the "legal loan amount" –the amount borrowed, according to the Truth in Lending Act. (Round your answer to the nearest cent.) (c) Find the Roth's monthly payment. (Round your answer to the nearest cent.) (d) Find the APR (round to the nearest hundredth of 1%). (e) Find the total interest paid. (Round your answer to the nearest cent.) (f) Find the total finance charge. (Round your answer to the nearest cent.) (g) Find the amount that the sellers are paid for their house.
Howard bought a $ 10,000.00 GIC bearing interest at 7% c.a due principal and interest in 10 years. He sold the GIC after 50 months to an investor who expects to earn 5% c.s.a. How much did the investor pay Howard for the GIC?

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