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Accounting & Economics For Business 5 November Ii
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13. M/s ABC Brothers, which was registered in the year 2000, has been following Straight Line Method (SLM) of depreciation. In the current year it changed its method from Straight Line to Written Down Value (WDV) Method, since such change would result in the additional depreciation of Rs. 200 Iakhs as a result of which the firm would qualify to be declared as a sick industrial unit. The auditor raised objection to this change in the method of depreciation. The objection of the auditor is justified because
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15. Goti Ltd. has issued 14% Debentures of Rs.20,00,000 at a discount of 10% on April 01, 2004 and the company pays interest half-yearly on June 30, and December 31 every year. On March 31, 2006, the amount shown as “interest accrued but not due” in the Balance Sheet will be (a) Rs.70,000 shown along with Debentures (b) Rs.2,10,000 under current liabilities (c) Rs.1 ,40,000 shown along with Debentures (d) Rs.2,80,000 under current liabilities