Question

6.A firm bought a machinery for RS 7,40,000 on 1st April 2017 and RS 60,000 is spent on its installation . Its useful life is estimated to be 5 years. Its estimated realisable or scrap value at the end of the period was estimated at RS. 40,000 . Find out the amount of annual Depreciation and rate of Depreciation​

Answer 1

Answer:

exppateausrsable or scrap value at the end of the period......

Answer 2

Given:

Cost of machinery = 7,40,000

Further cost = 60,000

Time = 5 years

Scrap value = 40,000

To Find:

Rate of Depreciation

Solution:

Total cost of machinery = 7,40,000 + 60,000

= 8,00,000

Annual Depriciation = Cost of Asset - Scrap Value/ Useful life of asset

= 8,00,000 - 40,000/5

= 7,60,000/5

= 1,52,000

Depriciation rate = Total amount of depreciation/ Asset cost x 100

= 1,52,000/ 8,00,000 x 100

= 152000/ 8000

= 19%

Answer: The rate of depreciation is 19%.