The book value of machinery on 01-04-2014 is Rs.1,62,000. Depreciation was charged at 10% per annum under WDV method. On 31-03- 2015 the method of depreciation is changed to straight line method with retrospective effect from 01-04-2012 and the rate being the same.

Rs.2,000 depreciation written back

Rs.5,800 depreciation to be charged

Rs.5,800 depreciation written back

Rs.2,000 depreciation to be charged

The book value of machinery on 01-04-2014 is Rs.1,62,000. Depreciation

1.	The book value of machinery on 01-04-2014 is Rs.1,62,000. Depreciation was charged at 10% per annum under WDV method. On 31-03- 2015 the method of depreciation is changed to straight line method with retrospective effect from 01-04-2012 and the rate being the same.
A.	Rs.5,800 depreciation to be charged
B.	Rs.5,800 depreciation written back
C.	Rs.2,000 depreciation to be charged
D.	Rs.2,000 depreciation written back
Answer» D. Rs.2,000 depreciation written back

Discussion

No Comment Found

Related MCQs

In case of illegal agreements collateral agreements are _____
Standing offer means _____
Nivya, Nitya and Kavya are partners in a firm sharing profits and losses in the ratio of 1:2:1. Nitya retired from the firm. Nivya and Kavya decided to share future profits and losses in the ratio of 3:1. They want to show the assets and liabilities in the new balance sheet at their old values. Then which account is to be prepared?
When preference shares are redeemed, otherwise than out of the proceeds of a fresh issue, there shall, out of profits which would otherwise have been available for dividend _____ of preference shares will be transferred to Capital Redemption Reserve A/c.
If favourable balance as per cashbook is the starting point, a wrong posting of Rs.5,200 in the deposit column of passbook will be ______ while preparing the B.R.S.
E’s Trial Balance contains the following information: Discount received Rs.15,000, Provision for discount on Trade Payables Rs.21,000. It is desired to maintain a provision for discount Trade Payables at Rs.19,600. The amount to be credited to the Profit & Loss Account is:
 Due to change in the accounting policy there is no material effect in the current year, but there is effect in the future years. This effect can be reasonably estimated. Then _______
A purchased 1000 kg of rice costing Rs.200 per kg. Paid carriage Rs.2,000 and insurance Rs.3,000. 4/5th of the same were sold by B at Rs. 250 per kg. Remaining Inventories were taken over by B at cost. The value of Inventories taken over by B will be______
Which of the following is not disclosed or recognized in the financial statements?
Mr. X sent goods to Mr. Y on Consignment basis at invoice price. Mr. Y sold the goods to the customers. One of the customers returned the goods to Mr. Y because of defective quality. Mr. Y returned those goods to Mr. X paying Rs.5,000 for freight. The returned goods are valued at _______

The book value of machinery on 01-04-2014 is Rs.1,62,000. Depreciation was charged at 10% per annum under WDV method. On 31-03- 2015 the method of depreciation is changed to straight line method with retrospective effect from 01-04-2012 and the rate being the same.

Discussion

No Comment Found

Related MCQs

Reply to Comment