A company purchased a machine for Rs. 700,000/-. It has total production capacity of 50,000 units. Following are detials of production in 3 years: 12,000 units 10,000 units 9,000 units Y1 Y2 Y3 Required: Calculate depreciation expense for first 3 years and carrying values as well.

A company purchased a machine for Rs. 700,000/-. It has total production capacity of 50,000 units. Following are detials of production in 3 years: 12,000 units 10,000 units 9,000 units Y1 Y2 Y3 Required: Calculate depreciation expense for first 3 years and carrying values as well.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Audit Procedures

Audit Procedures are methods and techniques performed by the auditor to determine the quality of financial information of clients, thereby expressing an opinion on true & fair view of financial statements and entity position. They are identified and applied at the planning stage of audit after determining audit objectives, scope, approach, and risk assessment.

Question

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Answer the following given question in picture by addressing following topics one by one for consequently 3 years.

1 year
2 cost
3 Depreciation exp
4 accumulated dep
5 carrying value

A company purchased a machine for Rs. 700,000/-.
It has total production capacity of 50,000 units.
Following are detials of production in 3 years:
12,000 units
10,000 units
9,000 units
Y1
Y2
Y3
Required: Calculate depreciation expense for first 3
years and carrying values as well.

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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