Quick answer of this accounting questions Ms. X purchased machinery for Rs 80,000 and spent Rs 8,000 ontransportation, Rs 6,000 on installation, and Rs 2,000 on foundation work.The machine is depreciated at 15% per annum on the written down valuemethod. After 4 years, the machine was sold for Rs 55,000, and Ms. X paidRs 1,000 as commission to the agent. Calculate the profit or loss on the saleof the machine.

Step 1: Definition of Written Down Value (WDV) MethodThe Written Down Value (WDV) Method of…

Answered: Ms. X purchased machinery for Rs 80,000…

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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Mr. A bought a machine for Rs 25,000 on which he spent Rs 5,000 for 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 is depreciated @ 10% every year on a written down basis. After three years the machine was sold to Mr. B for Rs 30,500 and Rs 500 was paid as commission to the broker. Find out the profit or loss on the sale of the machine.
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Silver Company purchased a machine for use in the business. The purchase price was $55,000 and the related sales tax totaled $500. Sliver paid $1,000 to have the machine delivered to its factory and $2,000 to have it assembled. Over the five-year life of the machine, maintenance cost of $800 will be incurred annually. What is the capitalized cost of this asset? Manning Company purchased a factory for $120,000. The factory included land, a building, and equipment. The land contributes 40.8%, the building contributes 49.6%, and the equipment contributes 9.6% of the factory’s value. How much of the cost should be assigned to the building? On January 1, Year 1, the Starshina Company paid $25,000 for a photocopier with an estimated useful life of 4 years, and an estimated residual value of $5,000. The company uses the straight-line method. What is the amount of depreciation expense for Year 2?
he ist machine for Rs.38,500 and on the same date purchased a new machinery for Rs.50,000. Depreciation is provided @ 20% p.a. on cost each year. Accounts are closed each year on 31" March. Show the Machinery account for three years. 0.5P Ltd. made a profit of Rs.5,00,000 after considering the following items: I. Preliminary expenses written off II. Depreciation on fixed assets III. Loss on sale of Machinery IV. Provision for doubtful debts Rs 5,000 50,000 20,000 10,000 7,500 V. Gain on Sale of Land The following is the position of current assets & current liabilities: Particulars 2017 (Rs.) 52,000 15,000 2,000 40,000 19,000 34,000 2018 (Rs.) 78,000 12,000 3,000 51,000 12,000 20,000 Debtors Bills Receivable Prepaid Expenses Creditors Bills Payable Expenses Payable Calculate Cash flow from Operating activities. Q.6 Calculate the current ratio and quick ratio from the following particulars and also give your comments about the sanme: Rs. 4,000 Cash
What is the depreciable based of the machine?
Bilmoco Company purchased a new machine on a deferred payment basis. A down-payment of P100,000 was made and 4 monthly installments of P250,000 are to be made at the end of each month. The cash equivalent price of the machine was P950,000. The entity incurred and paid installation costs amounting to P30,000. What is the amount to be capitalized as cost of the machine?
A piece of construction equipment (asset class 15.0) was purchased by the Jones Construction Company. The cost basis was $300,000. Solve, a. Determine the GDS and ADS depreciation deductions for this property. b. Compute the difference in PW of the two sets of depreciation deductions in Part (a) if i = 12% per year.
On 01-01-15, G purchased a machine for $10,000,000. Installation costs incurred and paid for on 01-01-15 were $50,000. G started using the machine on 01-01-15. G estimates it will use the machine for 3 years. At the end of the 3rd year, G will have to dispose of the machine at an estimated cost of $435,000. Assume as of 01-01-15 the interest rate on US Treasury securities was 1.75% and G’s credit standing required a 2% risk premium. G uses a straight-line depreciation method and assumes no salvage value. What amount should G report on its balance sheet as a fixed asset (machine) as of 12-31-15? Prepare an excel spreadsheet that clearly identifies and clearly labels G’s ARO obligation balance as of 12-31 for every year from 2015 to 2017 AND G’s accretion expense for every year for 2015 to 2017. Prepare the entries G should make related to the equipment and its ARO for the year ended 12-31-16 AND 12-31-17? On 01-01-18, G paid a vendor $420,000 to dispose of the machine in accordance…

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