Read the following information and answer the question.

ADDITIONAL INFORMATION:

1. The depreciation charged during the year on the plant was ₹36,000.
2. A plant having a book value of ₹20,000 was sold for ₹16,000 during the year.
3. Patents having a book value of ₹80,000 were sold for ₹1,10,000 during the year.

What amount of patents were written off between the beginning and closing time?

₹40,000

The correct answer is option 2- ₹40,000.

Opening balance = 2,60,000
Sales = 80,000
Remaining = 2,60,000 - 80,000
                 = ₹1,80,000
Closing balance = 1,40,000

As the closing balance is less than remaining balance, so patents are written off during the year.
Written off = 1,80,000 - 1,40,000
                 = ₹40,000