The correct answer is C. Rs. 3,333.
The sum of the years digit method is a depreciation method that allocates a higher depreciation expense in the early years of an asset’s life and a lower depreciation expense in the later years. The formula for calculating depreciation expense using the sum of the years digit method is:
Depreciation expense = (Cost – Salvage value) / (Sum of the years of the asset’s life)
In this case, the cost of the asset is Rs. 10,000, the salvage value is Rs. 1,000, and the useful life is 3 years. The sum of the years of the asset’s life is 1 + 2 + 3 = 6. Therefore, the depreciation expense for the first year is:
Depreciation expense = (10,000 – 1,000) / 6 = 3,333
The other options are incorrect because they do not represent the correct amount of depreciation expense for the first year.