Question

1. A boiler was purchased from abroad for 10,000. Shipping and forwarding charges * 2,000,
Import duty * 7,000 and expenses of installation amounted to * 1,000.
Calculate the Depreciation for the first three years (separately for each year) @ 10% p.a.
on Diminishing Balance Method.
[Balance after 3 years – 14,580.]
[Hint: Depreciation: 1st Year = 2,000; 2nd Year = 31,800; and 3rd Year = { 1,620.7
many purcha
dinery on Iste
Inril. 201

Answer 1

Answer:

cost of boiler = 10000+2000+7000+1000= 20000,

so depreciation calculated on 20,000