Question

A company purchased a machinery on April 01, 2010, for ₹15,00,000. It is estimated that the machinery will have a useful life of 5 years after which it will have no salvage value. The depreciation charged during the year 2014-15 was

a) ₹5,00,000
b) ₹4,00,000
c) ₹3,00,000

Please provide the explanation along with the answer.​

Answer 1

Answer:

a)₹5,00,000

b)₹4,00,000

c)₹3,00,000

Answer 2

Answer:

3,00,000

Explanation:

In straight line method, depreciation charge remains same for every year .

Depreciation is calculated as

cost price - salvage value / estimated life is depreciation

15,00,000 - 0 / 5

=3,00,000

Depreciation charged every year 3,00,000