alleryAsset bought 1 March 2022, year ends 31 March 2022, SLM ₹12,000 per year. Depreciation:
A₹12,000 full year
B₹6,000 six months
C₹1,000 one month
D₹2,000 two months
Answer & Solution
Correct answer: C. ₹1,000 one month
1. Depreciation is proportionate to period of use.
2. Period available = 1 month.
3. Annual ₹12,000 ÷ 12 = ₹1,000 for the month.
_Source: ICAI BoS Foundation Paper 1, Ch 5 "Depreciation & Amortisation", §3.1 example_
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