Madhur and Company purchases a machine for a certain sum. The company has a policy of charging 8% depreciation on written down value. The depreciated value of the machine after three years in the books of Madhur and Comp
CS CSEET · Business Economics & Fundamentals of Accounting and Auditing · PYQS · December 2013
Madhur and Company purchases a machine for a certain sum. The company has a policy of charging 8% depreciation on written down value. The depreciated value of the machine after three years in the books of Madhur and Company is ₹3,89,344. What was the purchase value of machine —
Answer & Explanation:
Correct Answer: Option (A)
Correct answer: (A) ₹5,00,000. Purchase price = 3,89,344/(0.92³) = 5,00,000.
Topics: Fundamentals of Accounting and Auditing
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