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

Sandhill Co. purchases a new delivery truck for $78000. The sales taxes are $4400. The logo of the company is painted on the side of the truck for $1000. The truck’s annual license is $100. The truck undergoes safety testing for $240. What does Sandhill record as the cost of the new truck?
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 final balance owing on the account in two years (24 months from now)? a. $10634.91 b. $10265.91 c. $11169.94 d. $10281.86
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.
Rizio Co. purchases a machine for $9,500, terms 1/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $95 discount. Transportation costs of $215 were paid by Rizio. The machine required mounting and power connections costing $657. Another $310 is paid to assemble the machine and $40 of materials are used to get it into operation. During installation, the machine was damaged and $210 worth of repairs were made. Complete the below table to calculate the cost recorded for this machine.
Stilton Ltd purchases a new delivery truck for $80,000 . The logo of the company is painted on the side of the truck for $1,000 . The truck registration is $500 , and a 12 -month accident insurance policy is $1,500 . The truck undergoes safety testing for $660 . What does Stilton Ltd record as the cost of the new truck? Select one: a. $81,660 . b. $80,000 . c. $83,060 . d. $81,000
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?
Vijay
1
2. A vehicle is purchased by ABC Co. The vehicle cost $35,000 and has a useful life of 5 years or 100,000 miles with a salvage value of $3,000 at the end of its useful life. There is a 6 percent sales tax due on the vehicle upon registration with the Registry of Motor Vehicles, and the registration fee is $120 in order to get new plates. Every year a $75 dollar license renewal fee is charged by the Registry. After six months, the vehicle is brought to the dealer for a $75.00 oil and filter change. In its six months of operation, it has a flat tire that cost $35 to repair. Two years down the road, the engine of the truck seizes and an engine replacement is performed, which cost $3,000. With regard to the above example, which of these expenditures are capitalized, and which are expensed? The cost of the vehicle The sales tax The plate and registration fee Annual registration fee The oil and filter change The flat tire repair The engine replacement
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.

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