What amount should be transferred annually to depreciation fund a/c if the cost of the plant is Rs. 600000, if its is to be written off over 4 years if sinking fund table shows Rs. 0.23549 invested annually at 4% for yr amount to Rs. 1.0.
A
Rs.1,48,090
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B
Rs.1,29,000
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C
Rs.1,41,294
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D
Rs.1,43,080
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Solution
The correct option is CRs.1,41,294 Sinking fund table shows the factor = 0.23549
The amount to be transferred annually to depreciation fund account = Rs. 6,00,000 x 0.23549 = Rs. 1,41,294