Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ABC Ltd needs to set up an effluent treatment plant in its premises. The cost of the equipment is Rs.10 lakh, additional cost include cost

ABC Ltd needs to set up an effluent treatment plant in its premises. The cost of the equipment is Rs.10 lakh, additional cost include cost of transportation of Rs. 2 lakh, customs duty of Rs. 1 lakh and installation expense of Rs. 1lakh. Rs. 2 lakh is required to clear the premises for the purpose of installation while experts charge a consultancy fee of Rs. 1.5 lakh. The factory rent is Rs.2 lakh and the treatment plant occupies 10% of the space. Six months after installation, maintenance work on the machine required an expense of Rs. 50,000. Calculate the cost at which the plant should be carried in the balance sheet.


Step by Step Solution

3.41 Rating (157 Votes )

There are 3 Steps involved in it

Step: 1

To calculate the cost at which the plant should be carried in ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Transportation A Global Supply Chain Perspective

Authors: Robert A. Novack, Brian Gibson, Yoshinori Suzuki, John J. Coyle

9th Edition

1337406643, 9781337406642

More Books

Students also viewed these Accounting questions

Question

Prove Equation (5.22).

Answered: 1 week ago

Question

Convert the numeral to a HinduArabic numeral. A94 12

Answered: 1 week ago