Home › CBSE Class 11 (Commerce) › Accountancy › Depreciation, Provisions and Reserves › An asset costing Rs 2,00,000 is depreciated at 1…
An asset costing Rs 2,00,000 is depreciated at 10 percent on written down value. Second year charge?
ARs 20,000
BRs 18,000
CRs 16,200
DRs 22,000
Answer & Solution
Correct answer: B. Rs 18,000
Year one charge is 20,000, leaving 1,80,000, and 10 percent of that is Rs 18,000.
Related questions
Depreciation of a machine is debited to which statement?Which feature must a depreciable asset have?Which asset type is depreciated under the depreciation rules, in line with AS-6?A reserve may be set up to meet which future need?Making an excessive provision for doubtful debts may result in what?Which of these can build a secret reserve?Charging higher depreciation than required creates which kind of reserve?A secret reserve differs from an ordinary reserve because it does what?