A fixed asset was bought for Rs. 5,000. Its accumulated depreciation is Rs. 3,000 and rate of depreciation is 20%. Calculate its depreciation expenses for the current accounting period using reducing balance method?

Rs. 600

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Rs. 2,000

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Rs. 300

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Rs. 400

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Solution

The correct option is D
Rs. 400

Particulars Amount (Rs.) Calculation

Written Down Value 2000 (5000-3000)

Depreciation 400 (2000*20%)

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Particulars	Amount (Rs.)	Calculation
Written Down Value	2000	(5000-3000)
Depreciation	400	(2000*20%)

A fixed asset was bought for Rs. 5,000. Its accumulated depreciation is Rs. 3,000 and rate of depreciation is 20%. Calculate its depreciation expenses for the current accounting period using reducing balance method?

The correct option is D Rs. 400 Particulars Amount (Rs.) Calculation Written Down Value 2000 (5000-3000) Depreciation 400 (2000*20%)

The correct option is D
Rs. 400

Particulars Amount (Rs.) Calculation

Written Down Value 2000 (5000-3000)

Depreciation 400 (2000*20%)