Question

[MCQ 1e.9] The balance on the plant and machinery account at cost on January 20X1 was €10,000. On 1 May plant costing €1,500 was sold. New machinery costing €6,000 was purchased on 1 September. Depreciation is charged, month-by-month, on a straight-line basis at 10% per annum and amounts for the year ended 31 December 20X1 to: (a) €1,250 (b) €1,100 (c) €1,050 (d) €1,200

          [MCQ 1e.9]
The balance on the plant and machinery account at cost on January 20X1 was €10,000.
On 1 May plant costing €1,500 was sold. New machinery costing €6,000 was purchased
on 1 September. Depreciation is charged, month-by-month, on a straight-line basis at
10% per annum and amounts for the year ended 31 December 20X1 to:
(a) €1,250
(b) €1,100
(c) €1,050
(d) €1,200

[MCQ 1e.9]
The balance on the plant and machinery account at cost on January 20X1 was €10,000.
On 1 May plant costing €1,500 was sold. New machinery costing €6,000 was purchased
on 1 September. Depreciation is charged, month-by-month, on a straight-line basis at
10% per annum and amounts for the year ended 31 December 20X1 to:
(a) €1,250
(b) €1,100
(c) €1,050
(d) €1,200

Added by Heather P.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Saqib Muneer

Step 1

The formula to calculate simple interest is: Interest = Principal * Rate * Time In this case, the principal is the given amount, the rate is 10% per annum, and the time is 1 year. (a) Interest = 1,250 * 0.10 * 1 = 125 (b) Interest = 1,100 * 0.10 * 1 = 110 (c) Show more…

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