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Standard XI

Accountancy

Straight Line Method(SLM)

A firm owns a...

Question

A firm owns a fleet of vehicles acquired at a total cost of Rs. 2,64,800.
Accumulated depreciation up to the beginning of the current year is Rs. 1,12,400. Vehicles are depreciated at 20% per annum using the straight-line method.
The value of depreciation for the current year would be?

Rs. 30,480

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Rs. 52,960

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Rs. 1,52,400

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Rs. 2,11,840

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Solution

The correct option is B
Rs. 52,960

Depreciation is charged on SLM i.e. 20% on Rs. 2,64,800
= Rs. 52,960.

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A firm owns a fleet of vehicles acquired at a total cost of Rs. 2,64,800. Accumulated depreciation up to the beginning of the current year is Rs. 1,12,400. Vehicles are depreciated at 20% per annum using the straight-line method. The value of depreciation for the current year would be?

The correct option is B Rs. 52,960 Depreciation is charged on SLM i.e. 20% on Rs. 2,64,800 = Rs. 52,960.

A firm owns a fleet of vehicles acquired at a total cost of Rs. 2,64,800.
Accumulated depreciation up to the beginning of the current year is Rs. 1,12,400. Vehicles are depreciated at 20% per annum using the straight-line method.
The value of depreciation for the current year would be?

The correct option is B
Rs. 52,960

Depreciation is charged on SLM i.e. 20% on Rs. 2,64,800
= Rs. 52,960.