Question

2. Opening balance of Machinery on 01-04-2019 was Rs. 10,000. The firm
charges depreciation @ 10% p.a. Additional Machinery of Rs. 6,000 was
purchased on 30-09-2019. What will be the amount of depreciation charged by
the firm on 31-03-2020?​

Answer 1

Answer:

Depreciation for opening balance of machinery for 1 year = 10,000 x 29/100 = 1,000

Depreciation for additional purchase of machinery from 30.09.2019 to 31.03.2020 = 6,000 x 10 /100 x 6/12 = 300

Total Depreciation = 1,000 + 300 = 1,300