{"id":54375,"date":"2024-04-16T00:09:07","date_gmt":"2024-04-16T00:09:07","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=54375"},"modified":"2024-04-16T00:09:07","modified_gmt":"2024-04-16T00:09:07","slug":"fixed-assets-net-31st-december1994-rs-150000-31st-december-1995-rs-190000-provision-for-depreciation-a-machine-costing-rs-70000-book-value-rs-40000-was-disposed-for-rs-25000-du","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/fixed-assets-net-31st-december1994-rs-150000-31st-december-1995-rs-190000-provision-for-depreciation-a-machine-costing-rs-70000-book-value-rs-40000-was-disposed-for-rs-25000-du\/","title":{"rendered":"Fixed Assets (Net): 31st December,1994 = Rs. 1,50,000 31st December, 1995 = Rs. 1,90,000 Provision for depreciation: A machine costing Rs. 70,000 (book value Rs. 40,000) was disposed for Rs. 25,000 during the year 1995 The application of funds in respect of fixed assets during the year is:"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;Rs. 1,10,000&#8243; option2=&#8221;Rs. 1,80,008&#8243; option3=&#8221;Rs. 2,05,000&#8243; option4=&#8221;Rs. 2,20,000&#8243; correct=&#8221;option3&#8243;]<!--more--><\/p>\n<p>The correct answer is: C. Rs. 2,05,000<\/p>\n<p>Explanation:<\/p>\n<p>The application of funds in respect of fixed assets during the year is calculated as follows:<\/p>\n<p>= Increase in fixed assets during the year<br \/>\n&#8211; Disposal of fixed assets during the year<\/p>\n<p>= (190000 &#8211; 150000)<br \/>\n&#8211; (70000 &#8211; 40000 + 25000)<\/p>\n<p>= 205000<\/p>\n<p>Therefore, the application of funds in respect of fixed assets during the year is Rs. 2,05,000.<\/p>\n<p>Each option is explained below:<\/p>\n<ul>\n<li>Option A: Rs. 1,10,000. This is the amount of depreciation charged during the year. However, this is not the application of funds. The application of funds is the amount of money spent on fixed assets during the year.<\/li>\n<li>Option B: Rs. 1,80,008. This is the sum of the increase in fixed assets during the year and the disposal of fixed assets during the year. However, this is not the application of funds. The application of funds is the amount of money spent on fixed assets during the year.<\/li>\n<li>Option C: Rs. 2,05,000. This is the correct answer. It is the amount of money spent on fixed assets during the year.<\/li>\n<li>Option D: Rs. 2,20,000. This is the sum of the increase in fixed assets during the year and the disposal of fixed assets during the year, plus the depreciation charged during the year. However, this is not the application of funds. The application of funds is the amount of money spent on fixed assets during the year.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;Rs. 1,10,000&#8243; option2=&#8221;Rs. 1,80,008&#8243; option3=&#8221;Rs. 2,05,000&#8243; option4=&#8221;Rs. 2,20,000&#8243; correct=&#8221;option3&#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-54375","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>Fixed Assets (Net): 31st December,1994 = Rs. 1,50,000 31st December, 1995 = Rs. 1,90,000 Provision for depreciation: A machine costing Rs. 70,000 (book value Rs. 40,000) was disposed for Rs. 25,000 during the year 1995 The application of funds in respect of fixed assets during the year is:<\/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\/fixed-assets-net-31st-december1994-rs-150000-31st-december-1995-rs-190000-provision-for-depreciation-a-machine-costing-rs-70000-book-value-rs-40000-was-disposed-for-rs-25000-du\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Fixed Assets (Net): 31st December,1994 = Rs. 1,50,000 31st December, 1995 = Rs. 1,90,000 Provision for depreciation: A machine costing Rs. 70,000 (book value Rs. 40,000) was disposed for Rs. 25,000 during the year 1995 The application of funds in respect of fixed assets during the year is:\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq 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