A purchased a machine from B at a price of purchased price to B + 15%. After using it for one year and depreciation at the rate of 8% p.a., he sold the same to C at a profit of 5%. C spent Rs. 8910 on its repairs to enhance the efficiency of the machine and treats the same as a part of the cost. He further sold the same to D at a price of purchased price + 10%. Value of the machine in the book of D is Rs. 105600 after one year provided depreciation is charged at a rate of 20% p.a. Calculate the actual cost of the machine at which it is purchased by B.?

Question

A purchased a machine from B at a price of purchased price to B + 15%. After using it for one year and depreciation at the rate of 8% p.a., he sold the same to C at a profit of 5%. C spent Rs. 8910 on its repairs to enhance the efficiency of the machine and treats the same as a part of the cost. He further sold the same to D at a price of purchased price + 10%. Value of the machine in the book of D is Rs. 105600 after one year provided depreciation is charged at a rate of 20% p.a. Calculate the actual cost of the machine at which it is purchased by B.?

Rs. 200000
Rs. 300000
Rs. 100000
Rs. 150000
Rs. 125000

LohaHridoy

6 views

2025-01-04 04:42

1 Answers

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AhmedNazir · Accepted Answer · 2022-09-04T04:29:57+06:00

Option 3 : Rs. 100000

Value of the machine in the book of D (Cost price for D – 20% of cost price) = Rs. 105600

Cost price for D = (100 × 105600)/80

⇒ 1056000/8

⇒ 132000

Accordingly, Selling price for C = 132000

Selling price for C = Cost + 10%

Cost price for C = (100 × 132000)/110

⇒ 1320000/11

⇒ 120000

As we know, Rs. 8910 is spent by C after purchasing it from A

Accordingly, Selling Price for A = 120000 – 8910

⇒ 111090

Selling price for A = (Cost price – Depreciation @8%) + 5%

Accordingly, Cost price – Depreciation @8% for A = (100 × 111090)/105

⇒ 11109000/105

⇒ 105800

Cost price = (100 × 105800)/92

⇒ 10580000/92

⇒ 115000

Accordingly, Selling price for B = 115000

Selling price = Cost price + 15%

Cost price for B = (100 × 115000)/115

⇒ 11500000/115

⇒ 100000

∴ Actual cost price of the machine at which it is purchased by B is Rs.100000