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

Question 50

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Question

MCQ▾

A company purchased machinery for $10,00,000 on 1st April 2000 and followed the diminishing balance method of providing depreciation@10 % p. a. Company close its books on 31st March. On 31st 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 1st April 2000 to 31st March 2003 was transferred to Profit and Loss Account on 31st 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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