IPCC Nov 11 Accounting paper doubt

Depn a/c dr.                             8000

New Mach a/c dr.                150000

Loss on exchange a/c dr.    17000

  to old mach a/c                                     160000

  to cash a/c                                               15000

    (150000-135000)

assumption, next part is paid in cash.....

depn on old mach= 160000*10%*6/12=8000

DEpn on new mach= 150000*10%*6/12=7500

DEpn on rest of the block= 400000*10%=40000

(560000-160000)

Total depn to be chgd=40000+7500+8000= 55500

Thus Book value= 560000-160000+150000-40000-7500= 502500

Note: machinery balance in trial Balance ise opening balance

Originally posted by : Sneha Mupparthi
	First  Question Bit-C...... In the Trail balance of M/s Sun Ltd as on 31-03-2011, balance of machinery appears5,60,000. The company follows rate of depreciation on machinery at 10% p.a. on straight line method. On scrutiny it was found that a machine appearing in the books on 01-04-2010 at1,60,000 was disposed of on 30-09-2010 at1,35,000 in part exchange of a new machine costing1,50,000.  You are required to calculate : 1. Total depreciation to be charged in the profit and loss account 2. Loss of exchange of machine 3. Book value of machinery in the balance sheet as on 31-03-2011   Please explain me how to solve this question...Thank you. Sneha

How can we charge depreciation on machine appearing on 1st april,10 @ 10% on 160k  for 6 months?  Isn't that supposed to be the  opening WDV,after providing for earlier years' depreciation ? I wonder do we even know the actual cost of this machine? :)  Unfer SLM , a suitable part of the original cost is written off every year.

Alternatively, we can not even arrive at the correct loss figure unless we know the date of purchase of this machine, assuming the given 160k is the orignal cost.

guess this can only be solved on assumptions :)

its wdv i refered it guys

Thanks to all for responses...

let us wait and see till ICAI releases suggested answers..

Thank you..

could someone post d solution to d average due date sum!

ok post d soln  asap!

yaa, you are right.

thanks