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CUET · MATHS · PYQ PAPER 2023

A main frame computer whose cost is₹ 5,00,000 will depreciate to a scrap value of 50,000 in 5 years. Using the linear method of depreciation, the book value of the computer at the end of 3 years will be :

  1. A ₹ 90,000
  2. B ₹ 180,000
  3. C ₹ 2,70,000
  4. D ₹ 2,30,000
Verified Solution

Answer & Solution

Correct Answer

(D) ₹ 2,30,000

Step-by-step Solution

Detailed explanation

Annual Depreciation \( = \frac{\text{₹ 5,00,000} - \text{₹ 50,000}}{5} = \text{₹ 90,000} \) Book Value at end of 3 years \( = \text{₹ 5,00,000} - (\text{₹ 90,000} \times 3) = \text{₹ 5,00,000} - \text{₹ 2,70,000} = \text{₹ 2,30,000} \)