On 1-4-2012 balance in plant account was Rs. 3,77,913. On 1-7-2012, purchased new machine for Rs.50,000 (installation expenses Rs.2,500). A sum of Rs. 30,000 was paid on the same date and balance Rs. 30,000 was paid on may 2013. company provides depreciation @15% p.a. on reducing balance method and close accounts on 31st March each year. Depreciation for the year ended 31-3-2013=?

Rs. 62,593

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Rs. 64,562

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Rs. 60,062

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Rs. 61,543

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Solution

The correct option is A Rs. 62,593
Depreciation for the year 31.03.2013 = Existing machinery + New machinery
= 56,687 + 5,906
= RS-62,593.
Working notes:-
1) existing machinery :-
= RS-3,77,913 x 15/100
= RS-56,687.
2) New machinery :-
= 50,000 + 2,500 x 15/100 x 9/12 (July to march)
= RS-5,906

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The correct option is A Rs. 62,593Depreciation for the year 31.03.2013 = Existing machinery + New machinery = 56,687 + 5,906 = RS-62,593.Working notes:-1) existing machinery :-= RS-3,77,913 x 15/100= RS-56,687.2) New machinery :-= 50,000 + 2,500 x 15/100 x 9/12 (July to march)= RS-5,906

The correct option is A Rs. 62,593
Depreciation for the year 31.03.2013 = Existing machinery + New machinery
= 56,687 + 5,906
= RS-62,593.
Working notes:-
1) existing machinery :-
= RS-3,77,913 x 15/100
= RS-56,687.
2) New machinery :-
= 50,000 + 2,500 x 15/100 x 9/12 (July to march)
= RS-5,906