need help
This query is : Resolved
21 April 2010
17. (a) The Alpha Electricity Company Limited decided to replace one of its old plants with
a modern one with a larger capacity. The plant when installed in 1960 cost the
company Rs. 30 lakhs, the components of materials, labour and overheads being in
the ratio of 3 : 2 : 1. It is ascertained that the costs of materials and labour have
gone up by 25% and 50% respectively. The proportion of overheads to total costs is
expected to remain the same as before.
The cost of the new plant as per improved design is Rs. 75 lakhs and in addition,
material recovered from the old plant of a value of Rs. 3,60,000 has been used in
the construction of the new plant. The old plant was scrapped and sold for Rs.
9,00,000.
The Accounts of the company are maintained under Double Account system.
Indicate how much would be capitalised and the amount that would be charged to
revenue. Show the Ledger Accounts.
a modern one with a larger capacity. The plant when installed in 1960 cost the
company Rs. 30 lakhs, the components of materials, labour and overheads being in
the ratio of 3 : 2 : 1. It is ascertained that the costs of materials and labour have
gone up by 25% and 50% respectively. The proportion of overheads to total costs is
expected to remain the same as before.
The cost of the new plant as per improved design is Rs. 75 lakhs and in addition,
material recovered from the old plant of a value of Rs. 3,60,000 has been used in
the construction of the new plant. The old plant was scrapped and sold for Rs.
9,00,000.
The Accounts of the company are maintained under Double Account system.
Indicate how much would be capitalised and the amount that would be charged to
revenue. Show the Ledger Accounts.
21 April 2010
Overheads (1/4 of above or 1/5 of total) 8,43,750
ye revision test paper ka question hai
ye revision test paper ka question hai
21 April 2010
hiee all any one plzz tell me the calculation of overhead in this question plzz tell
in question specify that
overhead are same as before then why we take 1/4 or 1/5 plzz tell
in question specify that
overhead are same as before then why we take 1/4 or 1/5 plzz tell
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Supply through E-commerce Operators
- Rent lease agreement
- Relief u/s Section 89
- Sales return eway bill
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- GST Rate applicable for 0% Food Items sold by an Industrial Caterer
- Agriculture income or business income
- STCG FOR GOLD ETFs
- GST ON DAMAGED GOODS
- Is it compulsory to File 10E if Income including Pension Arrears is below 12 Lakh for the F Y 25 26
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- STCG....................................................
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
