Question

If the Machinery Account has a balance of Rs.40,000 and the Accumulated Depreciation Account has a balance of Rs.18,500, the book value of the Machinery is:

(a) Rs.40,000 (b) Rs.21,500

(c) Rs. 18,500 (d) Rs.58,500

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Answer 1

Answer:

21,500

Explanation:

Book value = Cost less Accumulated depreciation

Answer 2

Answer:

The correct answer (b) Rs.21,500

Explanation:

From the above question,

The e book cost of the Machinery is Rs.21,500, which is calculated through subtracting the Accumulated Depreciation Account stability of Rs.18,500 from the Machinery Account stability of Rs.40,000. The e book fee is the closing cost of an asset after taking into account all of its accrued depreciation.

Book value of the Machinery = Machinery Account balance - Accumulated Depreciation Account balance

                       Book Value = Original Cost - Accumulated Depreciation

                                           = Rs.40,000 - Rs.18,500

                                           = Rs.21,500

Hence,

            The correct answer (b) Rs.21,500

If the Machinery Account has a balance of Rs.40,000 and the Accumulated Depreciation Account has a balance of Rs.18,500, the book value of the Machinery is  21,500

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