Practice Test

On April 01,2004 the debit balance of the machinery account of A Ltd.was Rs.5,67,000. the machine was purchased on April 01 , 2002.The company charged depreciation at the rate of 10 % p.a under diminishing balance method .On October 01,2004 , the company acquired a new machine at a cost so Rs.60,000 and incurred Rs.6,000 for the installation of the new machine. The company decided to change the system of providing depreciation from the diminishing balance method to the SLM with retrospective effect from April 01, 2002.The rate of depreciation will remain the same. The company decided to make necessary adjustment in respect of depreciation due to the change in the method in the year 2004-2005.Cost of machinery on 01.04.2002 =

Date of purchase of machine 1.04.2004 . Cost Rs.12,00,000 .Rate of depreciation : 10% p.a. on WDV . ON 1.10.2006 .a new machinery was purchased for Rs.80,000. .The closing balance of provision for depreciation account as of 31.03.2007 will be

In which of the following methods , is the cost of the asset written off in equal proportions during its useful economic life ?