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    • Question

      A company purchased machinery for ₹10,00,000 on 1

      April 2021. The machine has a useful life of 5 years, and depreciation is charged using the straight-line method. How should the company present this expense in its financial statements for the year ended 31 March 2022?
      A ₹10,00,000 deducted from retained earnings Correct Answer Incorrect Answer
      B ₹2,00,000 deducted from gross revenue Correct Answer Incorrect Answer
      C ₹10,00,000 as an expense in the Profit and Loss statement Correct Answer Incorrect Answer
      D ₹2,00,000 as an expense in the Profit and Loss statement Correct Answer Incorrect Answer

      Solution

      The correct answer is D

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