{"id":56237,"date":"2024-04-16T00:41:11","date_gmt":"2024-04-16T00:41:11","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=56237"},"modified":"2024-04-16T00:41:11","modified_gmt":"2024-04-16T00:41:11","slug":"a-machine-was-purchased-on-1st-january-1987-it-was-depreciated-by-written-down-value-method-at-the-rate-of-10-p","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/a-machine-was-purchased-on-1st-january-1987-it-was-depreciated-by-written-down-value-method-at-the-rate-of-10-p\/","title":{"rendered":"A machine was purchased on 1st January 1987. It was depreciated by written down value method at the rate of 10% P."},"content":{"rendered":"<p>[amp_mcq option1=&#8221;The depreciated value of machine as on 1st January 1990 is Rs. 13,122. The cost of machine on 1st January 1990 was A. Rs. 20,000&#8243; option2=&#8221;Rs. 18,000&#8243; option3=&#8221;Rs. 22,000&#8243; option4=&#8221;Rs. 19,000&#8243; correct=&#8221;option1&#8243;]<!--more--><\/p>\n<p>The correct answer is: A. Rs. 20,000<\/p>\n<p>The machine was purchased on 1st January 1987 and depreciated by written down value method at the rate of 10% P.A. The depreciated value of machine as on 1st January 1990 is Rs. 13,122. This means that the machine has depreciated by 68.78% in 3 years. The formula for calculating depreciation by written down value method is:<\/p>\n<p>Depreciation = (Cost of asset &#8211; Salvage value) * Rate of depreciation<\/p>\n<p>In this case, the salvage value is assumed to be zero. So, the depreciation is calculated as:<\/p>\n<p>Depreciation = (Cost of asset &#8211; 0) * 10% = 10% of Cost of asset<\/p>\n<p>The depreciated value of machine as on 1st January 1990 is Rs. 13,122. This means that the cost of the machine is 100\/68.78 = Rs. 14.46 times the depreciated value. So, the cost of the machine is 14.46 * Rs. 13,122 = Rs. 20,000.<\/p>\n<p>The other options are incorrect because they do not take into account the fact that the machine has depreciated by 68.78% in 3 years.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;The depreciated value of machine as on 1st January 1990 is Rs. 13,122. The cost of machine on 1st January 1990 was A. Rs. 20,000&#8243; option2=&#8221;Rs. 18,000&#8243; option3=&#8221;Rs. 22,000&#8243; option4=&#8221;Rs. 19,000&#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-56237","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>A machine was purchased on 1st January 1987. It was depreciated by written down value method at the rate of 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\/a-machine-was-purchased-on-1st-january-1987-it-was-depreciated-by-written-down-value-method-at-the-rate-of-10-p\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"A machine was purchased on 1st January 1987. It was depreciated by written down value method at the rate of 10% P.\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;The depreciated value of machine as on 1st January 1990 is Rs. 13,122. The cost of machine on 1st January 1990 was A. Rs. 20,000&#8243; option2=&#8221;Rs. 18,000&#8243; option3=&#8221;Rs. 22,000&#8243; option4=&#8221;Rs. 19,000&#8243; correct=&#8221;option1&#8243;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/a-machine-was-purchased-on-1st-january-1987-it-was-depreciated-by-written-down-value-method-at-the-rate-of-10-p\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-16T00:41:11+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"A machine was purchased on 1st January 1987. It was depreciated by written down value method at the rate of 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\/a-machine-was-purchased-on-1st-january-1987-it-was-depreciated-by-written-down-value-method-at-the-rate-of-10-p\/","og_locale":"en_US","og_type":"article","og_title":"A machine was purchased on 1st January 1987. It was depreciated by written down value method at the rate of 10% P.","og_description":"[amp_mcq option1=&#8221;The depreciated value of machine as on 1st January 1990 is Rs. 13,122. The cost of machine on 1st January 1990 was A. Rs. 20,000&#8243; option2=&#8221;Rs. 18,000&#8243; option3=&#8221;Rs. 22,000&#8243; option4=&#8221;Rs. 19,000&#8243; correct=&#8221;option1&#8243;]","og_url":"https:\/\/exam.pscnotes.com\/mcq\/a-machine-was-purchased-on-1st-january-1987-it-was-depreciated-by-written-down-value-method-at-the-rate-of-10-p\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2024-04-16T00:41:11+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\/a-machine-was-purchased-on-1st-january-1987-it-was-depreciated-by-written-down-value-method-at-the-rate-of-10-p\/","url":"https:\/\/exam.pscnotes.com\/mcq\/a-machine-was-purchased-on-1st-january-1987-it-was-depreciated-by-written-down-value-method-at-the-rate-of-10-p\/","name":"A machine was purchased on 1st January 1987. 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