In 2012, S.Ltd. acquired a mine at a cost of Rs 5,00,000. The estimated reserve of minerals is 50,00,000 tonnes of which 80% is expected to be realized. The first three years raisings are 1,50,000 : 2,00,000 & 2,50,000 tonnes, respectively. Depreciation for the third year=?

31, 250

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Rs.

18, 750

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Rs.

25, 000

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None of the above

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Solution

The correct option is B Rs $31, 250$
Depreciation for the 3rd year = Cost of the mine
--------------------------- x Revenue of the 3rd year
total revenue to be realised
= 5,00,000
--------------- x 2,50,000
40,00,000
= Rs-31,250.

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In 2012, S.Ltd. acquired a mine at a cost of Rs 5,00,000. The estimated reserve of minerals is 50,00,000 tonnes of which 80% is expected to be realized. The first three years raisings are 1,50,000 : 2,00,000 & 2,50,000 tonnes, respectively. Depreciation for the third year=?

The correct option is B Rs31,250Depreciation for the 3rd year = Cost of the mine --------------------------- x Revenue of the 3rd year total revenue to be realised = 5,00,000 --------------- x 2,50,000 40,00,000 = Rs-31,250.

The correct option is B Rs $31, 250$
Depreciation for the 3rd year = Cost of the mine
--------------------------- x Revenue of the 3rd year
total revenue to be realised
= 5,00,000
--------------- x 2,50,000
40,00,000
= Rs-31,250.