Charge in the profit and loss account in case of WDV method is more constant than SLM method of depreciation this statement is true or false?

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M/s ABC Brothers, which was registered in the year 2000, has been following Straight Line Method (SLM) of depreciation. In the current year it changed its method from Straight Line to Written Down Value (WDV) Method, since such change would result in the additional depreciation of Rs. 200 lakhs as a result of which the firm would qualify to be declared as a sick industrial unit. The auditor raised objection to this change in the method of depreciation.The objection of the auditor is justified because

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Depreciation is accounted for in the financial statements by

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B Ltd. has been charging depreciation on the straight line method. It charges a full year depreciation even if the machinery is utilized only for part of the year. An equipment which was purchased for Rs. 3,50,000 now stands at Rs. 2,97,500 after depreciating at the rate of 5% on a straight line basis. Now the company decides to change the method of depreciation with retrospective effect. The applicable reducing balance rate for this machinery would be 8% p.a. Assuming that before the effect of this change could be accounted, depreciation for the current year is already charged based on straight line method and is reflected in depreciated value of Rs. 2,97,500.If 8% depreciation was charged by the reducing balance method, WDV at the end of 2nd year is

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B Limited has been charging depreciation on the straight line method. It charges a full year depreciation even if the machinery is utilized only for part of the year. An equipment which was purchased for Rs.3,50,000 now stands at Rs.2,97,500 after depreciating at the rate of 5% on a straight line basis. Now the company decides to change the method of depreciation with retrospective effect. The applicable reducing balance rate for this machinery would be 8% p.a. Assuming that before the effect of this change could be accounted, depreciation for the current year is already charged based on straight line method and is reflected in the depreciated value of Rs.2,97,500.Q. If 8% depreciation was charged by the reducing balance method, WDV at the end of 1st year is

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A provision of depreciation is created by debating_____. 1.Machinery account 2.Profit and loss account 3.Profit and lost appropriation a ccount 4.None of the above?

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Charge in the profit and loss account in case of WDV method is more constant than SLM method of depreciation this statement is true or false?

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Charge in the profit and loss account in case of WDV method is more constant than SLM method of depreciation this statement is true or false? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Charge in the profit and loss account in case of WDV method is more constant than SLM method of depreciation this statement is true or false? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Charge in the profit and loss account in case of WDV method is more constant than SLM method of depreciation this statement is true or false?.

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