Question

MCQ:
A fixed asset was bought for Rs. 5000. Its accumulated depreciation is Rs. 3000 and rate of
depreciation is 20%. Calculate its depreciation expenses for the current accounting period using
reducing balance method?
A) 600
B) 2000
C) 300
D) 400​

Answer 1

Answer:

for current year value first of all find the remaining balance

current year balance = 5000 - 3000 ( depriciation)

= 2000

now depriciation = 2000 * 20%

= 400 (d)