Question

Shyam purchased a building for Rs. 20 lakh. After a period of five years, the depreciation charged on the building amounted to Rs. 3 lakh. However, due to boom in the property market, the current market value of the building is Rs. 28 lakh. State the value at which building should be recorded in the books of accounts. Also, give reasons for the same

Answer 1

Answer:

17 Lakh

Explanation:

Because the value of building according to cost concept is measured  as a particular amount concerning the asset is paid on the date of purchase and does not change year after year only depreciation can be deducted from it due normal wear and tear

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