4.
Calculate the amount of annual depreciation for three years by
(i) reducing balance method and by (ii) straight line method.
(1) Cost of machinery - 20,000 (2) Expected life - 3 years (3) Rate of
depreciation 33 1/3 % (4) Scrap value * 2,000.
(B.Com., Osm.) (Ans. Depreciation according to Reducing balance method
first year 6,667, Second year *4,444 and Third year 2,963.
Depreciation according to Straight line method 6,000 each year).
15000 Denreciation is to be provided annually
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