alleryStart learning →A machine bought for Rs 100000 is worth Rs 120000 at year end. Under historical cost it is carried at
ARs 120000
BRs 110000
CRs 20000
DRs 100000
Answer & Solution
Correct answer: D. Rs 100000
Historical cost ignores the rise in market value, so the machine stays at its Rs 100000 purchase cost.
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