Direction: A person has purchased an old building at a cost of Rs. 2,50,000/-, excluding the cost of land. The scrap value of the building is 10% of the cost of purchase and the future life of the building is 20 years.
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The total amount of sinking fund at the end of 20 years will be
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- Rs. 1,35,000/-
- Rs. 1,90,000/-
- Rs. 2,25,000/-
- Rs. 2,30,000/-
Correct Option: C
Total amount of sinking fund
= 250000 – 25000 = 225000.
