Question

A machine costing ₹8,00,000 has a salvage value of ₹80,000 after 10 years. The company follows Straight Line Method (SL

  • M . During the 4th year, it switches to Written Down Value (WD
  • V method for better matching of cost and benefit. What should be the correct accounting treatment?
A Continue with SLM as per consistency principle
B Retrospectively adjust previous depreciation
C Treat it as a change in accounting estimate prospectively
D Charge additional depreciation in current year to adjust
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