3. On 18 April 2016 a firm bought a machine for Rs. 45000 and spent Rs. 3000 on its installation and Rs.
2000 on its carriage. On the date of purchase, its life was estimated to be 10 years and the scrap
value of machine was estimated as Rs. 10000 at the end of tenth year. The amount of annual
depreciation and the rate of depreciation:
(A) Rs. 3000 and 7%
(b) Rs. 4000 and 8x
(c) Rs. 5000 and 10%
(d) Rs 6000 and 12%
Answers
Answered by
1
Answer:
depreciation = cost - scrap value/life
cost = 45000+3000+2000=50000
scrap value =10000
life =10 yrs.
depreciation = 50000-10000/10
=4000 per year
rate of depreciation = annual depreciation/cost ×100
=4000/50000×100
=8%
option b is correct
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