Question

2. Under the Diminishing Balance method
depriciation on a Nano car of Rs.1,10,000 @
10% p.a. in the third year comes to:
A. Rs. 11,000
B. Rs. 9,900
C. Rs. 8,019
D. None of the above​

Answer 1

Answer:

c. 8019 is right option

first year: 110000×10%=11000

110000-11000=99000

second year: 99000×10%=9900

99000-9900=89100

third year: 89100×10%=8910

89100-8910=8019