A-AS Level (CIE) Accounting Paper-3: Specimen Questions with Answers 50 - 50 of 50

Question 50

Question

MCQ▾

A company purchased machinery for $ 10,00, 000 on st April 2000 and followed the diminishing balance method of providing depreciation@10 % p. a. Company close its books on st March. On st March 2004, it was decided to follow the fixed instalment system of depreciating the machine from the very beginning. Rate of depreciation was kept unchanged. Depreciation deficiency from st April 2000 to st March 2003 was transferred to Profit and Loss Account on st March 2004. What is the amount of additional depreciation?

Choices

Choice (4)

a.

81000

b.

29,000

c.

2,71, 000

d.

3,00, 000

Answer

b.

Explanation

Total depreciation from April 1,2000 to March 31,2003 under old method:

Total depreciation from April 1,2000 to March 31,2003 under new method:

Additional depreciation charged from will be,

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