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Standard XI

Accountancy

Straight Line Method(SLM)

What amount s...

Question

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. $1.0$ .

R s . 1, 48, 090

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R s . 1, 29, 000

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R s . 1, 41, 294

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R s . 1, 43, 080

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Solution

The correct option is C $R s . 1, 41, 294$
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

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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.

The correct option is C Rs.1,41,294Sinking fund table shows the factor = 0.23549The amount to be transferred annually to depreciation fund account = Rs. 6,00,000 x 0.23549 = Rs. 1,41,294

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. $1.0$ .

The correct option is C $R s . 1, 41, 294$
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