Question

A company uses straight line method of depreciation for an item of equipment that cost 28000 has salvage value of 3000 and has a 5 years useful , what will be the book value of assets at the end of the year?

kindly Answer with Formula !​

Answer 1

Explanation:

Dr.

Cr.

Date Particulars Amount (Rs) Date Particulars Amount (Rs)

2007 2008

Apr. 01 Bank A/c (1,90,000 + 10,000) 2,00,000 Mar. 31 Depreciation A/c 25,000

Mar. 31 Balance c/d 1,75,000

2,00,000 2,00,000

2008 2009

Apr. 01 Balance b/d 1,75,000 Mar. 31 Depreciation A/c 25,000

Mar. 31 Balance c/d 1,50,000

1,75,000 1,75,000

2009 2010

Apr. 01 Balance b/d 1,50,000 Mar. 31 Depreciation A/c 25,000

Mar. 31 Balance c/d 1,25,000

1,50,000 1,50,000

2010 2011

Apr. 01 Balance b/d 1,25,000 Mar. 31 Depreciation A/c 25,000

Mar. 31 Balance c/d 1,00,000

1,25,000 1,25,000

Depreciation Acco