alleryStart learning →A machine bought for Rs 1,00,000 is worth Rs 1,20,000 at year end. At what amount is it shown under historical cost?
ARs 20,000
BRs 1,20,000
CRs 1,10,000
DRs 1,00,000
Answer & Solution
Correct answer: D. Rs 1,00,000
Historical cost keeps the asset at its acquisition value and ignores the rise in market value.
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