Question

a form purchase an item of plant and machinery on 1st January 2012 at a cost of 1500 rupees and include 300 on carriage and rupees 700 on it is determined it was decided to depreciated 90% of caused by the straight line method over the working life of the machine which is estimated to be 10 years so the plant and machinery account for the first five year​

Answer 1

Answer:

According to straight line method, the amount of yearl -depreciation is calculated as follows:

Depreciation = (Cost of asset - Scrap value) / Estimated life and,

Depreciation = Rs. ( 50000 - 10000 ) / 10

Depreciation = Rs. 4000

Depreciation rate = (Depreciation expense / Cost of asset) * 100

Depreciation rate = (Rs. 4000 / Rs. 50000 ) * 100

Depreciation rate = 8%