On 1-1-2013 X firm purchased a roasting machine for TK. 80000 and griding machine for TK 60000. On 1-1-2014, the firm further purchased one oil expeller for Tk. 120,000. On, 1-1-2015, the roasting machine got out of order and a new roaster was purchased costing 140,000 after surrendering the old machine and paying cash of Tk. 100,000. On 1-1-2016. The Oil expeller purchased on 1-1-2014 was destroyed by fire and the insurance company paid Tk. 70,000 Only. Show depreciation expense over the year

Q: AASB 116 ‘Property, Plant and Equipment’.

A: Recognition - It is pertinent to note that Property , Plant and equipment can be capitalized in the…

Q: 4. 20 years ago, Mr. Mohan use the machine but purchased it on April 01, 2010, for 2,80,000 and…

A: The objective of the question is to prepare the Machine and Depreciation accounts for the first four…

Q: The estimated useful life of the machine is five years, after which time the residual value is…

A: The right answer is option c.36,000

Q: Give the machinery account for four years.

A: Machinery account for Year 1:Formula reference for Year 1:Machinery account for Year 2:Formula…

Q: Alpha Corporation owns machinery that costs Tk 10,50,000 when purchased on March 1, 2014.…

A: Depreciation is the decrease in value of asset due to wear and tear.

Q: The gain on reversal of impairment loss on December 31, 2016 is

A: Calculate impairment loss as on April 1, 2016 as shown below: Impairment loss = Cost - Accumulated…

Q: Company paid interest of $2,000 on the loan during year 1. Company paid shipping costs of

A: 1. Interest on loan taken and utilized for purchase of machinery is        a capital expenditure.…

Q: A solar panel unit has been purchased by a company for electricity back up. The solar unit costs…

A: depreciation is decrease in monetory value of the asset due to wear and tear of the asset. annual…

Q: Z Limited purchases an asset for $50,000 from CashCrow Company on 1 January 2015 for cash. Z Ltd…

A: Total cost of the machine = Purchase price + Delivery and installation costs = $50,000 +$60000 =…

Q: Onslow Co. purchases a used machine for $178,000 cash on January 2 and readies it for use the next…

A: Journal is the book of original entry in which all the financial transactions of the business are…

Q: On October 1, 2013 a machine costing Rs. 35,000 was purchased and Rs. 5,000 spent on transporting…

A: Depreciation means the wear and tear of assets by usage , passage of time or change in technology.

Q: XYZ Company purchased a machine on January 1, 2014. The cost of the machine was $175,000 with a…

A: Solution According to the Straight line method of depreciation  Depreciation per year = (Original…

Q: A machine costs RO 40,000 with a salvage value of RO 20,000. The expected life of the machine is…

A: Given: Cost Value = RO 40,000 Salvage value = RO 20,000 So,  Depreciation per hour = Cost value -…

Q: Taylor Company purchased a machine for $9,800 on January 1, 2016. The machine has beendepreciated…

A: Methods of Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset…

Q: On January 1, 2017, Abraham SA purchased the following two machines for use in its production…

A: Journal Entries are primary record maintained by an entity for the occurrence or non- occurrence of…

Q: Richy Limited has plant that cost R 345 000 on 01 January 2016. Installation and modification costs…

A: Depreciation- Depreciation is a cost incurred on fixed tangible assets to account for the decrease…

Q: A firm purchased a Machine on 1 January 2010. The Machine has a 5 year life and no residual value.…

A: Depreciation Accounting: Depreciation Accounting is the method of debiting the cost of an asset and…

Q: Anchor Company purchased a manufacturing machine with a list price of $88,000 and received a 2% cash…

A: Cost of machine means the amount actually incurred on buying the machine and in addition to this,…

Q: GRACE Co. recently acquired two items of equipment. Acquired a press at an invoice price of…

A: In the given question, we were given two equipment, one of which is a press machine and the other is…

Q: The company estimates that the useful life of the machine is 4 years with a Tk. 5,000 salvage value…

A: The calculation of amount of annual depreciation is shown hereunder : Cash price of machine Tk…

Q: XL Co. owns a machine purchased a machine 4 years ago for OMR 80,000. The accumulated depreciation…

A:

Q: ABC Co. acquired a new machine. Details of the acquisition are as follows: Cash paid for machine…

A: All costs directly related to the asset and the cost incurred to bring the asset to use will be…

Q: Richy Limited has plant that cost R345 000 (including vat) on 01 January 2018. Installation and…

A: Capitalized Cost of Asset= Cost of Asset (+) Installation and modification costs (+) Transfer costs…

Q: A machine was purchased on 1st January 2015 at a cost of OMR 120,000. At the time of Sale, the…

A: The machine or machinery is used by a company for several years, and therefore, as per the matching…

Q: Prepare machinery account from 1st April 2014 to 31st March 2018.

A: The amount or expense being charged upon the fixed asset based upon its usage and life time is known…

Q: During the current year, Benguet Company purchased a secondhand machine at a price of P300,000. A…

A: The cost which is incurred to bring the machine into a working form will be capitalized

Q: A company purchased a new machine on January 1, 2014. The supplier, "Forever supply" was paid $2,000…

A: Depreciation is charged to allocate the cost of the asset over the useful life of the asset.…

Q: The Aghfa Id purchased new machinery for Rs 1,400,000 with 6years estimated useful life and no…

A:

Q: Company C purchased a machine costing Rs. 15, 00,000 for its production process. It paid freight Rs.…

A: As per AS-10, the cost of the machine should include all the expenses incurred to bring the machine…

Q: A solar panel unit has been purchased by a company for electricity back up. The solar unit costs…

A: Depreciation expense refers to the fall in the value of the asset due to passage of time, wear and…

Q: VMA Corporation purchased an office Equipment for Rs. 650,000 with estimated life of 10 years and…

A: Depreciation is the decrease in the book value of asset and is charged at the end of the accounting…

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.