Advanced AccountingQuestion 5326 of 305
All Questions

2. Cost of Self Constructed Asset as per AS 10 will be ?

Options

A` 2,92,500
B` 2,77,500
C` 3,05,000
D` 2,90,000
For any discrepancies in this question, email contact@cadada.in

Correct Answer

✅ Option C — ` 3,05,000

All Options:

  • A` 2,92,500
  • B` 2,77,500
  • C` 3,05,000 ✓
  • D` 2,90,000

Ad

Detailed Solution & Explanation

To calculate the cost of the Self-Constructed Asset under AS 10:
1. Cost of raw material used = 1500 unitsב 125=‘ 1,87,500\displaystyle 1500 \text{ units} \times `\,125 = `\,1,87,500.
2. Labour and other overhead charges = ‘ 90,000\displaystyle `\,90,000.
3. Installation charges = ‘ 15,000\displaystyle `\,15,000.
4. Under AS 16, interest on specific borrowings is capitalized: the loan portion for raw material is ‘ 1,87,500\displaystyle `\,1,87,500, and interest for 8 months @ 10% is:
Capitalized Interest=‘ 1,87,500×10%×812=‘ 12,500\text{Capitalized Interest} = `\,1,87,500 \times 10\% \times \frac{8}{12} = `\,12,5005. Total Cost of Self-Constructed Asset is:
Total Cost=1,87,500+90,000+15,000+12,500=‘ 3,05,000\text{Total Cost} = 1,87,500 + 90,000 + 15,000 + 12,500 = `\,3,05,000
Hence, **Option C** is the correct answer.

More Questions from Advanced Accounting

3x−2:5x+6\displaystyle 3x-2:5x+6 the duplicate ratio of 2:3\displaystyle 2:3 then find the value x\displaystyle x.

If the ratio of two numbers is 7:11\displaystyle 7:11. If 7\displaystyle 7 is added to each number then the new ratio will be 2:3\displaystyle 2:3 then the numbers are.

If x:y=z:7=4:11\displaystyle x:y=z:7=4:11 then x+y+zz\displaystyle \frac{x+y+z}{z} is

The ratio of two numbers are 3:4\displaystyle 3:4. The difference of their squares is 28\displaystyle 28 greater is:

The price of scooter and moped are in the ratio 7:9\displaystyle 7:9. The price of moped is ₹1,600\displaystyle ₹1,600 more than that of scooter. Then the price of moped is:

If A:B=3:7\displaystyle A:B=3:7, then 3a+2b:4a+5b=?\displaystyle 3a+2b:4a+5b=?

Ready to Master Advanced Accounting?

Practice all 305 questions with instant feedback, earn XP, track your streaks, and ace your CA Foundation exam.

Start Practicing — It's Free