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Hi Sir,
I’m confuse about average investment , why we add scrap value in initial investment as scrap value already included in initial investment,
For instance a machine with cost of 50,000 and scrap value 5000, here our actual investment is 50.000 not 55000 by adding scrap value,
so can you please to clear my confusion .In order to find an average, we always add the opening and closing figures and divide them by 2. This is the same thing happening here and the scrap value just represents the closing figure of the investment.
rameeza: Please do not answers questions in this forum, because it is the Ask the Tutor Forum and you are not the tutor. However please do help people in the other Paper FM forum 🙂
zeshan957: You have asked the same question in both of the FM forums, and I have answered you in the other forum.
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