From the following details calculate the Land & Building purchased during the year -
Land & Building on 1.4.2018 = 2,00,000
Land & Building on 313.2019 = 2,13,750
Depreciation provided on land & building during the year was Rs. 11,250.

Rs. 25000

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Rs. 2,500

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Rs. 13,750

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Nil

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Solution

The correct option is A Rs. 25000
Land and building is calculated after deducting the depreciation.Hence, the land & building on 31.3.2019 is inclusive of depreciation.
The land & building purchased during the year can be calculated using the formula given below:
$L a n d & B u i l d i n g p u r c h a s e d = C l o s i n g b a l a n c e + D e p r e c i a t i o n - O p e n i n g b a l a n c e$
Substitute values in the above equation
$L a n d & B u i l d i n g p u r c h a s e d = R s 2, 13, 750 + R s 11, 250 - R s 2, 00, 000 = R s 25, 000$
Thus, the land & building purchased during the year is Rs25,000.

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From the following details calculate the Land & Building purchased during the year -Land & Building on 1.4.2018 = 2,00,000 Land & Building on 313.2019 = 2,13,750 Depreciation provided on land & building during the year was Rs. 11,250.

From the following details calculate the Land & Building purchased during the year -
Land & Building on 1.4.2018 = 2,00,000
Land & Building on 313.2019 = 2,13,750
Depreciation provided on land & building during the year was Rs. 11,250.