Multiple choice

The book value of furniture at the beginning of an year on 1st April was Rs. 1,50,000. During the year, furniture with original book value of Rs. 30,000 was sold for Rs. 25,000 on 1st January and furniture worth Rs. 20,000 was purchased. If the rate of depreciation is 10% per annum, what will be the value of furniture on 31st March?

  1. Rs. 1,35,000

  2. Rs. 1,08,000

  3. Rs. 1,53,000

  4. Rs. 1,30,500

  5. Rs. 1,26,000
Reveal answer Fill a bubble to check yourself
E Correct answer
Explanation

Book value of furniture at the end = 1,50,000 + 20,000 - 30,000 = Rs. 1,40,000 less depreciation @ 10%, i.e. Rs. 1,26,000.

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