Question

26. A company purchased a machine for Rs. 30,000. It immediately spent on it Rs. 5,000. The
machine was put to uses on 1-1-90. After having used it for six years, it was sold for Rs. 15000.
You are required to prepare Machinery account for 6 years, providing depreciation at 10% on
original cost.​

Answer 1

Answer:

As per question

cost of plant Rs50,000

useful life =10years

Residual value =Rs5000

Depreciation =cost residual value/estimated useual life

=50,000-5000/10

=45000/10

=4500

Also,

rate of depreciation = anual depreciation

cost of plant into 100

= 4500/50,000 ×100

=9%

pls make me as a brillianist