Question

An equipment was purchased on 1st January, 2012 for Rs. 25,000 & is to be depreciated at 30% based on WDV method. If the company closes its books of account on 31 st March every year. What would be the net book value of the equipment as at 31 st December 2013:

• A. 12,250
• B. 10,000
• C. 17,750
• D. 12,545

Answer 1

Answer: (A)

12,250

Value of Equipment as on $1stJan,2012=25,000$
Less: Depreciation for the year 2012(25,000 x 30%) $=7,500$
$=17,500$
Less: Depreciation for the year 2013(17,500 x 30%) $=5,250$
Net Book Value of the Equipment $=12,250$