Question

4.
M/s Sitaram and Co. purchased a Machinery on 1st Jan, 2016 for 32,00,000. Compnay
provides depreciation @ 10% p.a. on Reducing Balance Merthod on 31st March every
year.
Calculate written down value of Machinery as on 31st March, 2017,
​

Answer 1

Answer:

cost of machinery. =3200000

- depreciation

on 31st mar..2016

(for 3 months) = 80000

(3200000×10%×3/12)

balance on 1.4.2016. 31,20,000

depreciation

on 31.3.2017. 312000

(3120000×10%)

book value on 31.3.2017 28,08,000