{"id":44861,"date":"2024-04-15T21:49:48","date_gmt":"2024-04-15T21:49:48","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=44861"},"modified":"2024-04-15T21:49:48","modified_gmt":"2024-04-15T21:49:48","slug":"the-cost-of-the-motor-car-as-on-1st-january-1987-is-rs-70000-the-rate-of-depreciation-is-10-p","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/the-cost-of-the-motor-car-as-on-1st-january-1987-is-rs-70000-the-rate-of-depreciation-is-10-p\/","title":{"rendered":"The cost of the motor car as on 1st January 1987 is Rs. 70,000. The rate of depreciation is 10% P."},"content":{"rendered":"<p>[amp_mcq option1=&#8221;The balance of motor car on 1st January 1991 by fixed installation method and by written down value method will be A. Rs. 42,000, Rs. 45,927&#8243; option2=&#8221;Rs. 45,927, Rs. 47,526&#8243; option3=&#8221;Rs. 35,000, Rs. 39,415&#8243; option4=&#8221;Rs. 45,927, Rs. 48,718&#8243; correct=&#8221;option1&#8243;]<!--more--><\/p>\n<p>The correct answer is:<\/p>\n<ul>\n<li>Fixed installment method: Rs. 42,000<\/li>\n<li>Written down value method: Rs. 45,927<\/li>\n<\/ul>\n<p>Here is a brief explanation of each method:<\/p>\n<ul>\n<li>Fixed installment method: In this method, the depreciation is calculated on the original cost of the asset and is the same for each year of the asset&#8217;s life. In this case, the depreciation for each year would be Rs. 70,000 x 10% = Rs. 7,000. The balance of the motor car on 1st January 1991 would be Rs. 70,000 &#8211; (7,000 x 4) = Rs. 42,000.<\/li>\n<li>Written down value method: In this method, the depreciation is calculated on the written down value of the asset, which is the original cost of the asset less the depreciation that has already been charged. In this case, the depreciation for the first year would be Rs. 70,000 x 10% = Rs. 7,000. The written down value of the asset at the end of the first year would be Rs. 70,000 &#8211; Rs. 7,000 = Rs. 63,000. The depreciation for the second year would be Rs. 63,000 x 10% = Rs. 6,300. The written down value of the asset at the end of the second year would be Rs. 63,000 &#8211; Rs. 6,300 = Rs. 56,700. The depreciation for the third year would be Rs. 56,700 x 10% = Rs. 5,670. The written down value of the asset at the end of the third year would be Rs. 56,700 &#8211; Rs. 5,670 = Rs. 51,030. The depreciation for the fourth year would be Rs. 51,030 x 10% = Rs. 5,103. The written down value of the asset at the end of the fourth year would be Rs. 51,030 &#8211; Rs. 5,103 = Rs. 45,927.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;The balance of motor car on 1st January 1991 by fixed installation method and by written down value method will be A. Rs. 42,000, Rs. 45,927&#8243; option2=&#8221;Rs. 45,927, Rs. 47,526&#8243; option3=&#8221;Rs. 35,000, Rs. 39,415&#8243; option4=&#8221;Rs. 45,927, Rs. 48,718&#8243; correct=&#8221;option1&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-44861","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The cost of the motor car as on 1st January 1987 is Rs. 70,000. The rate of depreciation is 10% P.<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/the-cost-of-the-motor-car-as-on-1st-january-1987-is-rs-70000-the-rate-of-depreciation-is-10-p\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The cost of the motor car as on 1st January 1987 is Rs. 70,000. The rate of depreciation is 10% P.\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;The balance of motor car on 1st January 1991 by fixed installation method and by written down value method will be A. 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The rate of depreciation is 10% P.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/the-cost-of-the-motor-car-as-on-1st-january-1987-is-rs-70000-the-rate-of-depreciation-is-10-p\/","og_locale":"en_US","og_type":"article","og_title":"The cost of the motor car as on 1st January 1987 is Rs. 70,000. The rate of depreciation is 10% P.","og_description":"[amp_mcq option1=&#8221;The balance of motor car on 1st January 1991 by fixed installation method and by written down value method will be A. Rs. 42,000, Rs. 45,927&#8243; option2=&#8221;Rs. 45,927, Rs. 47,526&#8243; option3=&#8221;Rs. 35,000, Rs. 39,415&#8243; option4=&#8221;Rs. 45,927, Rs. 48,718&#8243; correct=&#8221;option1&#8243;]","og_url":"https:\/\/exam.pscnotes.com\/mcq\/the-cost-of-the-motor-car-as-on-1st-january-1987-is-rs-70000-the-rate-of-depreciation-is-10-p\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2024-04-15T21:49:48+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/the-cost-of-the-motor-car-as-on-1st-january-1987-is-rs-70000-the-rate-of-depreciation-is-10-p\/","url":"https:\/\/exam.pscnotes.com\/mcq\/the-cost-of-the-motor-car-as-on-1st-january-1987-is-rs-70000-the-rate-of-depreciation-is-10-p\/","name":"The cost of the motor car as on 1st January 1987 is Rs. 70,000. 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