The written down value of machine on 31 st March, 2013 is ₹72,900. The machine was purchased on 1 st April, 2010. Depreciation is being charged @ 10% p.a. by diminishing balance method. The cost price of the machine woul

CS CSEET · Business Economics & Fundamentals of Accounting and Auditing · PYQS · June 2013
The written down value of machine on 31 st March, 2013 is ₹72,900. The machine was purchased on 1 st April, 2010. Depreciation is being charged @ 10% p.a. by diminishing balance method. The cost price of the machine would be —
(A) ₹1,00,000
(B) ₹90,000
(C) ₹81,000
(D) ₹72,900.

Answer & Explanation:

Correct Answer: Option (A)

Correct answer: (A) ₹1,00,000. Original cost = 72,900/0.9³ = 1,00,000.

Topics: Fundamentals of Accounting

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