Question

ABC ltd purchased a machine for ₹20,000. After a period of 5 years, the accumulated depreciation charged on the machine is ₹4,000. However, due to a boom in the market, the current market value of the machine is ₹26,000. At what value should the machine be recorded in the books of accounts and because of which accounting concept?

A ₹22,000; Matching Concept
B ₹20,000; Historical Cost Concept
C ₹16,000; Historical Cost Concept
D ₹26,000; Matching Concept
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