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How come the fixed asset is added with the depreciation amount in this problem ?

anamika vardhan

CA Inter

★ 1K+

26-Aug-20 18:26

580

Answers (3)

it is not added it is subtracted - pls look at it carefully

Sriram Somayajula

Admin

26-Aug-20 18:33

Sriram Somayajula Admin

it is not added it is subtracted - pls look at it carefully

Yes.but why the original cost given in balance sheet is not taken ?

Thread Starter

anamika vardhan

CA Inter

★ 1K+

26-Aug-20 18:37

The closing balance of the asset is 70.12(cost given in question) and the depreciation thereof is 0.78 which makes the opening balance 70.9 Thus Fixed asset balance in balance sheet(in Solution) 70.12 + 155.7 = 225.82

Lavanya Chitturi

CA Inter

★ 895

26-Aug-20 22:01