Here's the question bank on all the accountancy topics.
The following balances are extracted at the end of the accounting period from the books of Radhey Shyam as follows:Plant & Machinery Rs. 2,00,000Furniture Rs. 50,000Building Rs. 5,00,000Depreciation is to be charged:20% on plant & machinery, 10% on furniture and 5% on Building. Calculate the amount of depreciation to be charged in the Profit and Loss account.
The correct answer is ?70,000Depreciation: It means a decline in the value of fixed assets due to use, the passage of time, or obsolescence or diminution in the intrinsic value of the asset due to use and/or lapse of time. Important PointsCalculation of depreciation: Depreciation on Plant & Machinery = ?2,00,000*20% = ?40,000Depreciation on Furniture = ?50,000*10% = ?5,000Depreciation on Building = ?5,00,000*5%= ?25,000Total Depreciation = 40,000+5,000+25,000= ?70,000
Scan QR code to download our App for
more exam-oriented questions
.png)
OR
To get link to download app