XYZ purchased a plant having estimated useful life of $15$ years, however after $5$ year the remaining life of the asset is revised to $5$ years. Rs. $40, 000$ being the remaining depreciable amount will be charged/allocated over ____________.

5

years

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10

years

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immediately

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charged to revaluation a/c

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Solution

The correct option is B $5$ years
Where their is a revision of the estimated useful life of an asset, the unamortised depreciation amount should be charged over the revised remaining useful life.
Remaining depreciable amount after 5 yrs. = Rs. 40,000
Remaining life of asset revised to = 5 years
Hence, the remaining depreciable amount will be charged over 5 years.

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XYZ purchased a plant having estimated useful life of 15 years, however after 5 year the remaining life of the asset is revised to 5 years. Rs. 40,000 being the remaining depreciable amount will be charged/allocated over ____________.

XYZ purchased a plant having estimated useful life of $15$ years, however after $5$ year the remaining life of the asset is revised to $5$ years. Rs. $40, 000$ being the remaining depreciable amount will be charged/allocated over ____________.