alleryStart learning →A franchise right reacquired at Rs 120 lakh has 6 years of contract left. Annual amortisation?
ARs 12 lakh
BRs 24 lakh
CRs 6 lakh
DRs 20 lakh
Answer & Solution
Correct answer: D. Rs 20 lakh
The right is amortised over the remaining contractual period, so 120 divided by 6 is Rs 20 lakh a year.
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