Consider the following data relating to the financial year 2021-2022 and answer the following questions based on this data.

What is the value of capital consumption allowance?

₹16,000

The correct answer is Option 1: ₹16,000

NNP_MP = GNP_MP - Depreciation

or Depriciation= GNP_MP - NNP_MP

GNP_MP is ₹1,06,000 and NNP_MP is ₹90,000.

The difference between the two is the value of capital consumption allowance, i.e., depreciation. The value is ₹1, 06,000 – ₹90,000 = ₹16,000.