Single entry system - illustration 5

Is this approach correct or any mistake in workings

Thread Starter

poco m2 pro

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23-Jan-23 20:42

two alternatives are there to show

Ansh Rajput

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23-Jan-23 21:17

they framed the question in a way that closing balance in question resembles value before providing depreciation........am I correct......,, But framing questions with that logic seems to me incorrect from my view....

Thread Starter

poco m2 pro

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23-Jan-23 21:26

brother you are doing it wrong it is said in question depreciation is to be provided means we have to charge depreciation so it is not provided first so closing balance which is 3,60,000 is the amount before providing depreciation so we have to charge depreciation to ascertain correct closing balance and so difference between opening and closing balance of building is due to addition which is of 40,000 and after that charge depreciation which amounts to 36000

Ansh Rajput

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23-Jan-23 21:31

yes correct ,

Ansh Rajput

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23-Jan-23 21:33

Ok boss.... Thanksð??? for the effort and replies

Thread Starter

poco m2 pro

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23-Jan-23 21:35

no problem brother

Ansh Rajput

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23-Jan-23 21:37