An equipment was purchased on 1 st January, 2012 for ₹25,000 and is to be depreciated at 30% based on reducing balance method. If the company closes its books of account on 31 st March every year, what would be the net b
CS CSEET · Business Economics & Fundamentals of Accounting and Auditing · PYQS · December 2013
An equipment was purchased on 1 st January, 2012 for ₹25,000 and is to be depreciated at 30% based on reducing balance method. If the company closes its books of account on 31 st March every year, what would be the net book value of the equipment as at 31 st December, 2013 —
Answer & Explanation:
Correct Answer: Option (D)
Correct answer: (D) ₹12,545.. With a 31 March year end: 25,000×(1−0.30×3/12)×0.70×(1−0.30×9/12) = 12,545.31, rounded to 12,545.
Topics: Fundamentals of Accounting and Auditing
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