Question

A company purchased a machinery worth Rs.40000 and spent Rs.10000 on its installation. The

residual value of machinery after 5 year is Rs. 10000. Then the amount of depreciation will be

charged at Rs............

a) 8000 b) 5000 c) 10000 d) 4000​

Answer 1

Answer:

cost of machinery = 40,000 + 10,000 = 50,000

scrap value = 10,000

estimated time = 5 years

depreciation = cost of machinery - scrap value/ time

= 50,000 - 10,000/5

= 8000