'A' purchased a computer on 1.04.06 for Rs. 60,000. He purchased another computer on 1.10.07 for Rs. 40,000. He charges depreciation at 20% p.a. on the straight-line method. What will be the closing balance of the computer as on 31.3.09?

Rs. 40,000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Rs. 64,000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Rs. 52,000

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Rs. 48,000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is C Rs. 52,000
Depreciation on machinery :-
Old machinery ( 1.04.06 - 31.3.09)
= 60,000 x 20/100 x 3 years
= RS-36,000.

New machinery (1.10.07 - 31.03.09)
= 40,000 x 20/100 x 1 year and 6 months
= 8,000 + 4,000
= RS-12,000.
WDV of the balance as on 31.03.2009:-
= (60,000 + 40,000) - (36,000 + 12,000)
= RS-52,000

Suggest Corrections

Similar questions

M/s. Excel Computers has a debit balance of Rs 50,000 (original cost Rs 1,20,000) in computers account on April 01, 2010. On July 01, 2010 it purchased another computer costing Rs 2,50,000. One more computer was purchased on January 01, 2011 for Rs 30,000. On April 01, 2014 the computer which has purchased on July 01, 2010 became obsolete and was sold for Rs 20,000. A new version of the IBM computer was purchased on August 01, 2014 for Rs 80,000. Show Computers account in the books of Excel Computers for the years ended on March 31 2011, 2012, 2013, 2014 and 2015. The computer is depreciated @10 p.a. on straight line method basis.

Q. Question : M/s Excel Computers has a debit balance of Rs

50, 000

(original cost Rs

1, 20, 000

) in Computers account on April 1, 2000. On July 1, 2000, it purchased another computer costing Rs

2, 50, 000

. One more computer was purchased on January 1, 2001, for Rs

30, 000

. On April 1, 2004, the computer which has purchased on July 1, 2000, became obsolete and was sold for Rs

20, 000

. A new version of the IBM computer was purchased on August 1, 2004, for Rs

80, 000

. Show Computers account in the books of Excel Computers for the years ended on March 31, 2001, 2002, 2003, 2004 and 2005. The computer is depreciated @

10 %

per annum on straight-line method basis.

M/s Excel Computers has a debit balance of Rs 50,000 (original cost Rs 1,20,000) in Computers account on April 1, 2000. On July 1, 2000, it purchased another computer costing Rs 2,50,000. One more computer was purchased on January 1, 2001, for Rs 30,000. On April 1, 2004, the computer which has purchased on July 1, 2000, became obsolete and was sold for Rs 20,000. A new version of the IBM computer was purchased on August 1, 2004, for Rs 80,000. Show Computers account in the books of Excel Computers for the years ended on March 31, 2001, 2002, 2003, 2004 and 2005. The computer is depreciated @ $10 %$ per annum on straight-line method basis.

Bank purchased a computer on 01.03.2015 at a cost Rs. 50,000, estimated life is 8 years, amount of depreciation under straight-line method will be __________.

On 1st April 2009 Mahindra & Company Sangli purchased two Computers for Rs 37,000. The fixation charges were amounted to Rs 3,000. They decided to provide depreciation on Computers @ 15% p.a. under Fixed Instalment Method.

On 1st October 2011 one Computer having original cost of Rs 20,000 was sold for Rs 15,000 and on the same date new Computer was purchased for Rs 30,000.

Depreciation was provided annually on 31st March.

Show Computer Account for 2009-10, 2010-11, 2011-12.

Join BYJU'S Learning Program