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Ittehad Silk Factory is engaged in the production of silk fabric of different types. Mr. Sultan
Ghani, one of the directors, bought latest embroidery machines for its newly established
embroidery unit for Rs. 2,450,000/- on 1st January 2011. The company depreciates
machinery @10% p.a. The machinery will be disposed off at the end of 5th year at Rs.
1,280,000/-. The accounts are closed on 31st December each year.

Required:
1. Prepare the Fixed Asset Schedule regarding machinery showing the columns
of Years, Cost, Depreciation charges, Accumulated depreciation and Written
down value for five years using the following methods separately:
a) Straight line method
b) Diminishing balance method
2. Calculate the profit or loss on the disposal of machinery under:
a) Straight line method
b) Diminishing balance method

Grading Scheme:
a) Straight line method Calculations 10 Marks
b) Diminishing balance method 10 Marks
c) Calculation of Profit/Loss using a & b 3 +3 Marks
d) Formatting (Use of proper tables and titles) 4 Marks

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Replies to This Discussion

Thax alot ash .for answering my question .u make it very clear for me now .can u plz help me in assignment cs201 also  .? do u have any salution ?

You are right ASH G! Good

tariq  bhai ZINDABAAD

@ash dear thnx i did the same way u jst did but idea solution jst confused me,now no more confusion thx alot

kia hai ye???

 

AOA,

      hope all are doing best n enjoying best of health and luck.

I need soft copy of the reference book , not hand outs. Can anybody provide that please.

Regards.

cost of Asset ( embroidery unit) = Rs. 2,450,000/-
Life of Asset = 5 years
Annual Depreciation =10% per annum
= Rs.2,45,000/- for each year.
particulars Depreciation(Rs) Written down value(Rs)
Depreciable Cost
Depreciation Of The 1st year
Depreciation Of The 2nd year
Depreciation Of The 3rd year
Depreciation Of The 4th year
Depreciation Of The 5th year
(2,45,000)
(2,45,000)
(2,45,000)
(2,45,000)
(2,45,000)
Rs. 2,450,000/-
2,205,000/-
1,960,000/-
1,715,000/-
1,470,000/-
1,225,000/-

Diminishing balance method
cost of Asset ( embroidery unit) = Rs. 2,450,000/-
Life of Asset = 5 years
Annual Depreciation =10% per annum
Particulars Depreciation(Rs). Accumulated
Depreciation(Rs).
Written down
value (Rs).
Depreciable Cost
Depreciation Of The 1styear
2,450,000x10%
Depreciation Of The 2nd year
2,205,000x10%
Depreciation Of The 3rd year
1,984,500x10%
Depreciation Of The 4th year
1,786,050x10%
Depreciation Of The 5th year
1,607,445x10%
2,45,000/-
2,20,500/-
1,98,450/-
1,78,605/-
1,60,744/-
2,45,000/-
4,65,500/-
6,63,950/-
8,42,555/-
10,03,299/-
Rs. 2,450,000/-
2,205,000/-
1,984,500/-
1,786,050/-
1,607,445/-
1,446,701/-

THANKS

TARIQ SAHAB.

yar koi ik bhi asa ha jo assgment da sakhay???????

a) Straight line method Cost = Rs.2450000 Residual value=1280000Expected life= 5 years Depreciation = (2450000-1280000)/5 = 234000
Particular Depreciation Written down value
Depreciation cost 1170000
Dep. of 1st year 234000 936000
Dep. of 2nd year 234000 702000
Dep. of 3rd year 234000 468000
Dep. of 4th year 234000 234000
Dep. of 5th year 234000 0

tariq bhai depreciation cost kasy li hy....

bus itna sa ha sawal ya baqi sab same ha tariq bhai :(

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