Question
A company purchased machinery for ₹50,00,000 on 1st
April 2020. Installation cost was ₹5,00,000. Residual value ₹3,00,000, useful life 5 years. On 1st April 2022, fair value was assessed at ₹30,00,000. Depreciation is charged on straight-line basis. What is the carrying amount as of 31st March 2023 and revaluation surplus?Solution
Cost = ₹55,00,000 Depreciation/year = (55 – 3)/5 = ₹10,40,000 2 years depreciation = ₹20,80,000 Carrying amount on 1-Apr-2022 = ₹34,20,000 Fair Value = ₹30,00,000 ⇒ downward revaluation Revaluation loss = ₹4,20,000 (to P&L or OCI as per AS-10) After 1 more year depreciation: Depreciation = (30 – 3)/3 = ₹9,00,000 Carrying amount = ₹21,00,000
On purchase of old furniture, the amount of ₹1,000 spent on its repair should be debited to:
The death-cum-retirement gratuity received by the Government Employee or employee of local authority is _______________.
While evaluating investments, the release of working capital at the end of the project life should be considered as __________.
On 1 April 2024, a company enters into a 3-year lease for machinery with annual lease payments of ₹5,00,000, payable at the end of each year. The incr...
A company earned a profit of Rs. 10,000 during the year. If the marginal cost and selling price of the product are Rs. 2 per unit and Rs. 4 per unit res...
Which category of banks has the highest Priority Sector Lending (PSL) target as a percentage of Adjusted Net Bank Credit (ANBC)?
An insurance company earned gross premium of ₹120 crore, of which ₹20 crore was unearned at year end. Claims incurred were ₹65 crore. Calculate th...
With respect to Insurance Accounting, what is the appropriate adjustment entry based on the provided information?
A) Claims intimated and accepte...
The objective of ______ is to prescribe the accounting treatment for intangible assets that are not dealt with specifically in another Accounting Standard.
What is the taxable event under GST?
