Question
Nitin acquired a machine in exchange of an old machine
and paid ₹ 20,000 in cash. The carrying amount of the old machine was ₹ 2,00,000 whereas its fair value was ₹ 1,50,000 on the date of exchange. The historical cost of the new machine will be taken as:Solution
In this scenario, when an old machine is exchanged for a new machine and cash is also involved, the historical cost of the new machine is calculated as follows: Fair Value of Old Machine + Cash Paid The fair value of the old machine is ₹1,50,000, and cash paid is ₹20,000. So, the historical cost of the new machine will be: ₹1,50,000 (Fair Value of Old Machine) + ₹20,000 (Cash Paid) = ₹1,70,000 Therefore, the historical cost of the new machine is ₹1,70,000.
Debenture redemption reserve is transferred to which reserve:
Which of the following is the correct full form of REIT?
What is the minimum duration for which a Small Account can remain operational after opening, if the account holder has not furnished any Officially Vali...
XYZ Ltd. has furnished the following details to the bank while seeking working capital finance for the upcoming financial year:
• Total Current...
With effect from ______, the historic indirect tax reform- GST was introduced in India.
Under AS 6, which of the following cannot be considered a method of depreciation?
Concurrent audit is a part of:
Which form is used for preparing the Profit and Loss Account of an insurance company carrying out life insurance business under the IRDA Regulations, 2002?
As per recently published data of PIB related to 31st March 2023, How much Gross Merchandise Value (GMV) GeM has recorded in FY 2022-23?
Gross working capital refers to:
