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Question :

How much amount will be shown in Income and Expenditure Account as depreciation of sports equipments, if sports equipments at the beginning and end of the year is valued at Rs.80,000 and Rs.1,10,000 respectively and sports equipment of 50,000 is purchased during the year?

Option 1:

Rs.30,000

Option 2:

Rs.20,000

Option 3:

Rs.8,000

Option 4: Nil


Team Careers360 11th Jan, 2024
Answer (1)
Team Careers360 22nd Jan, 2024

Correct Answer:

Rs.20,000


Solution : Amount in Income and Expenditure A/c = Opening sports equipment + Purchases - Closing sports equipment = Rs.80,000 + Rs.50,000 - Rs.1,10,000 = Rs.20,000.
Hence, the correct option is 2.

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