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The W.D.V. of an asset after there years of depreciation on the reducing balance method @ 10% p.a. is Rs. 36,450. What was its original value?
- a)Rs. 40,000
- b)Rs. 50,000
- c)Rs. 45,000
- d)Rs. 70,250
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
The W.D.V. of an asset after there years of depreciation on the reduci...
Value of asset at the end of 2nd year = value at the end of 3rd year x 100/90
= 36,450 x 100/90
= RS-40,500.
Value of asset at the end of 1st year = value at the end of 2nd year x 100/90
= 40,500 x 100/90
= RS-45,000.
Original value = Value at the end of 1st year x 100/90
= 45,000 x 100/90
= RS-50,000.
Most Upvoted Answer
The W.D.V. of an asset after there years of depreciation on the reduci...
Given data:
W.D.V. of an asset after three years of depreciation on the reducing balance method @ 10% p.a. = Rs. 36,450
To find:
Original value of the asset
Solution:
Let the original value of the asset be 'x'.
Depreciation rate = 10% p.a.
Therefore, the asset's value at the end of the first year will be x - (10/100)x = 0.9x.
Similarly, the asset's value at the end of the second year will be 0.9x - (10/100)0.9x = 0.81x.
And, the asset's value at the end of the third year will be 0.81x - (10/100)0.81x = 0.729x.
Given that the W.D.V. of the asset after three years of depreciation on the reducing balance method @ 10% p.a. is Rs. 36,450.
Therefore, 0.729x = 36,450
x = 36,450/0.729
x = Rs. 50,000
Hence, the original value of the asset was Rs. 50,000.
Therefore, the correct answer is option 'B'.
W.D.V. of an asset after three years of depreciation on the reducing balance method @ 10% p.a. = Rs. 36,450
To find:
Original value of the asset
Solution:
Let the original value of the asset be 'x'.
Depreciation rate = 10% p.a.
Therefore, the asset's value at the end of the first year will be x - (10/100)x = 0.9x.
Similarly, the asset's value at the end of the second year will be 0.9x - (10/100)0.9x = 0.81x.
And, the asset's value at the end of the third year will be 0.81x - (10/100)0.81x = 0.729x.
Given that the W.D.V. of the asset after three years of depreciation on the reducing balance method @ 10% p.a. is Rs. 36,450.
Therefore, 0.729x = 36,450
x = 36,450/0.729
x = Rs. 50,000
Hence, the original value of the asset was Rs. 50,000.
Therefore, the correct answer is option 'B'.
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The W.D.V. of an asset after there years of depreciation on the reduci...
Question me thoda sa mistake ho gya h, THERE year ni hoga THREE year hoga. ENJOY YOUR STUDY :-)
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The W.D.V. of an asset after there years of depreciation on the reducing balance method @ 10% p.a. is Rs. 36,450. What was its original value?a)Rs. 40,000b)Rs. 50,000c)Rs. 45,000d)Rs. 70,250Correct answer is option 'B'. Can you explain this answer?
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The W.D.V. of an asset after there years of depreciation on the reducing balance method @ 10% p.a. is Rs. 36,450. What was its original value?a)Rs. 40,000b)Rs. 50,000c)Rs. 45,000d)Rs. 70,250Correct answer is option 'B'. Can you explain this answer? 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 The W.D.V. of an asset after there years of depreciation on the reducing balance method @ 10% p.a. is Rs. 36,450. What was its original value?a)Rs. 40,000b)Rs. 50,000c)Rs. 45,000d)Rs. 70,250Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The W.D.V. of an asset after there years of depreciation on the reducing balance method @ 10% p.a. is Rs. 36,450. What was its original value?a)Rs. 40,000b)Rs. 50,000c)Rs. 45,000d)Rs. 70,250Correct answer is option 'B'. Can you explain this answer?.
The W.D.V. of an asset after there years of depreciation on the reducing balance method @ 10% p.a. is Rs. 36,450. What was its original value?a)Rs. 40,000b)Rs. 50,000c)Rs. 45,000d)Rs. 70,250Correct answer is option 'B'. Can you explain this answer? 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 The W.D.V. of an asset after there years of depreciation on the reducing balance method @ 10% p.a. is Rs. 36,450. What was its original value?a)Rs. 40,000b)Rs. 50,000c)Rs. 45,000d)Rs. 70,250Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The W.D.V. of an asset after there years of depreciation on the reducing balance method @ 10% p.a. is Rs. 36,450. What was its original value?a)Rs. 40,000b)Rs. 50,000c)Rs. 45,000d)Rs. 70,250Correct answer is option 'B'. Can you explain this answer?.
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