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Basic Accounting

  1. A fixed asset originally acquired for Rs. 20, 000 is replaced by a new asset costing Rs. 50,000. But the estimated cost of replacement of the original asset is Rs. 30,000. Hence, the capital charge equals
    1. Rs. 50,000.
    2. Rs. 20,000.
    3. Rs. 30,000.
    4. Rs. 40,000.
  2. A fixed asset originally acquired for Rs. 20, 000 is replaced by a new asset costing Rs. 50,000. But the estimated cost of replacement of the original asset is Rs. 30,000. Hence, the revenue charge equals
    1. Rs. 50,000.
    2. Rs. 20,000.
    3. Rs. 30,000.
    4. Rs. 40,000.
  3. A fixed asset originally acquired for Rs. 20, 000 is replaced by a new asset . The estimated cost of replacement of the original asset is Rs. 30,000. The sales proceeds of old materials amounted to Rs. 5,000.  Hence, the revenue charge equals
    1. Rs. 50,000.
    2. Rs. 20,000.
    3. Rs. 30,000.
    4. Rs. 25,000.
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