Question

The balance of Fixed Assets of Falna Ltd. at W.D.V. at the end of $2013$ and $2014$ are Rs. $3,60,000$ and Rs. $6,00,000$ Accumulated depreciation on Fixed Assets for $2013$ and $2014$ are Rs. $1,60,000$ and Rs. $1,80,000$. A machinery costing Rs. $20,000$ which is half depreciated is discarded and written off during $2006$, here the amount of purchase of fixed assets is ______________.

• A. Rs. $2,80,000$
• B. Rs. $2,60,000$
• C. Rs. $5,00,000$
• D. Rs. $2,70,000$

Answer 1

Answer: (A)

Rs. $2,80,000$

Cost $=$ WDV $+$ Accumulated Dep.
Cost for $2013$ $=$Rs. $3,60,000+1,60,000$
$=$Rs. $5,20,000$
Cost for $2014$ $=$Rs. $6,00,000+1,80,000$
$=$Rs. $7,80,000$
Cost of fixed assets $\left(2009\right)$ Rs. $7,80,000$
Cost of fixed assets $\left(2008\right)$ Rs. $5,20,000$
Less : Cost of assets written off $20,000$
$5,00,000$
_______________
Purchase of Fixed Assets $2,80,000$
_______________