The following annual charges are incurred in respect of a machine in a shop where manual labor is almost nil and work is done by means of five machines of exactly the same type of specification: (i) Rent and rates (proportional to the floor space) for the shop Rs 6,000 (ii) Depreciation on each machine Rs 1,000 (iii) Repairs and maintenance for the five machines Rs 1,200 (iv) Power consumed (as per the meter) at 5 paise per unit for the shop Rs 3,000 (v) Electric charges for light in the shop Rs 600 (vi) Attendants: There are two attendants for the five machines, and they are each paid Rs 80 per month. (vii) Supervision: For the five machines in the shop, there is one supervisor whose emoluments are Rs 300 per month. (viii) Sundry supplies for the shop is Rs 500. (ix) Hire purchase installments payable for the machine (including Rs 300 as interest) is Rs 1,200. The machine uses 10 units of power per hour. Calculate the MHR for the machine for the year.
The following annual charges are incurred in respect of a machine in a shop where manual labor is almost nil and work is done by means of five machines of exactly the same type of specification: (i) Rent and rates (proportional to the floor space) for the shop Rs 6,000 (ii) Depreciation on each machine Rs 1,000 (iii) Repairs and maintenance for the five machines Rs 1,200 (iv) Power consumed (as per the meter) at 5 paise per unit for the shop Rs 3,000 (v) Electric charges for light in the shop Rs 600 (vi) Attendants: There are two attendants for the five machines, and they are each paid Rs 80 per month. (vii) Supervision: For the five machines in the shop, there is one supervisor whose emoluments are Rs 300 per month. (viii) Sundry supplies for the shop is Rs 500. (ix) Hire purchase installments payable for the machine (including Rs 300 as interest) is Rs 1,200. The machine uses 10 units of power per hour. Calculate the MHR for the machine for the year.
The following annual charges are incurred in respect of a machine in a shop where manual labor is almost nil and work is done by means of five machines of exactly the same type of specification: (i) Rent and rates (proportional to the floor space) for the shop Rs 6,000 (ii) Depreciation on each machine Rs 1,000 (iii) Repairs and maintenance for the five machines Rs 1,200 (iv) Power consumed (as per the meter) at 5 paise per unit for the shop Rs 3,000 (v) Electric charges for light in the shop Rs 600 (vi) Attendants: There are two attendants for the five machines, and they are each paid Rs 80 per month. (vii) Supervision: For the five machines in the shop, there is one supervisor whose emoluments are Rs 300 per month. (viii) Sundry supplies for the shop is Rs 500. (ix) Hire purchase installments payable for the machine (including Rs 300 as interest) is Rs 1,200. The machine uses 10 units of power per hour. Calculate the MHR for the machine for the year.
The following annual charges are incurred in respect of a machine in a shop where manual labor is almost nil and work is done by means of five machines of exactly the same type of specification:
(i) Rent and rates (proportional to the floor space) for the shop
Rs 6,000
(ii) Depreciation on each machine
Rs 1,000
(iii) Repairs and maintenance for the five machines
Rs 1,200
(iv) Power consumed (as per the meter) at 5 paise per unit for the shop
Rs 3,000
(v) Electric charges for light in the shop
Rs 600
(vi) Attendants: There are two attendants for the five machines, and they are each paid Rs 80 per month.
(vii) Supervision: For the five machines in the shop, there is one supervisor whose emoluments are Rs 300 per month.
(viii) Sundry supplies for the shop is Rs 500.
(ix) Hire purchase installments payable for the machine (including Rs 300 as interest) is Rs 1,200.
The machine uses 10 units of power per hour. Calculate the MHR for the machine for the year.
Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video
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