alleryMachine bought 1 April 2020 for ₹4,00,000, WDV @ 10%. Carrying amount on 31 March 2023:
A₹2,80,000 balance value
B₹3,24,000 balance value
C₹3,00,000 balance value
D₹2,91,600 balance value
Answer & Solution
Correct answer: D. ₹2,91,600 balance value
1. Year 1 dep = 4,00,000 × 10% = 40,000; WDV = 3,60,000.
2. Year 2 dep = 3,60,000 × 10% = 36,000; WDV = 3,24,000.
3. Year 3 dep = 3,24,000 × 10% = 32,400; WDV = 2,91,600.
_Source: ICAI BoS Foundation Paper 1, Ch 5 "Depreciation & Amortisation", §3.2 illustration_
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