Question

Plant & machinery has an opening balance of Rs. 20,000.
Rate of depreciation =15% p.a.
Plant & machinery will be shown in the assets side of balance sheet at _____.

• A. Rs. 17,000
• B. Rs. 16,000
• C. Rs. 20,000
• D. None of these

Answer 1

The correct option is A Rs. 17,000

Amount of depreciation
= 15% of Rs. 20,000 = Rs. 3,000

Closing balance of plant & machinery
= Opening balance - Depreciation
= Rs. 20,000 - Rs. 3,000
= Rs. 17,000

Plant & machinery will be shown in the assets side of balance sheet at Rs. 17,000.