Depreciation problems

Problem 1
Mehra Polymer company bought a new machine.
The company incurred the following expenditures
in connection with the purchase:
a)
b)
c)
d)
e)
f)
g)

purchase price (net of discount, 60,000) 5,40,000

VAT, Rs 40,000
Freight, Rs 12,000
Transit Insurance, Rs 3,000
Special bedding for the machine, Rs 6,000
Cost of trial production runs, Rs 4,000
Compensation to a worker for injury while unloading the
machine, Rs 2,000
Compute the depreciable cost of the machine.

Problem 2
Shyam Rubber Company bought a machine
on July 1, 2014, at a cost of Rs 34,000. it has
an estimated useful life of five years and an
estimated residual value of Rs 2,000. The
companys reporting period ends on March
31, 2015. compute the depreciation expense
for the year ended March 31, 2015 using the
straight-line depreciation method.
Compute the depreciation amount for the FY
2014-2015.

Problem 3
Hamid Builders bought construction machinery on
April 1, 2009 at a cost of Rs 8,00,000 with an
estimated useful life of nine years and an
estimated residual value of Rs 80,000. The
management decides to change the depreciation
method from written-down value to straight-line in
the financial statements for the year March 31,
2015.
Prepare the depreciation schedule for SLM and
WDV methods and show how much the company
should depreciate the machinery for the Year 201415 if it is done prospectively and retrospectively for
the year 2015-2015.