On 1^st January, 2005 the plant and machinery was valued at Rs. 80,000 and on 31^st December, 2005 it was valued at Rs. 1,20,000. Rs. 10,000 was written off as depreciation during the year. This will result in:

A. Source of Funds Rs. 30,000

B. Application of funds Rs. 50,000

C. Application of funds Rs. 40,000

D. Source of fund Rs. 50,000

Answer: Option B