Indian Fibres Limited acquired
a plant worth Rs.10 crore. The
plant has an
economic life of 15 years. The
policy of the company is to
provide sufficient
provision in the form of
depreciation @ 10% p.a for the
replacement of the plant
as and when it is completely
worn out. The financial
manager of the company
suggests written down
value method for charging
depreciation for the plant.
a. Can the company replace the
asset at the end of fifteen years
with the
aggregate amount of provision
for depreciation?
b. According to you, which
method can be taken as an
appropriate method for
charging depreciation keeping
in view the policy of the
company? Why?
10:55 am
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Answer:
same can u explains the question
Explanation:
what that
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