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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
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B
10,000
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C
17,750
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D
12,545
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Solution

The correct option is D 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

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