A generator is purchased for 210000 on 1st October 2012 depreciation is to be provided annually e according to fixed installment method the useful life of the asset is 10 years and the residual value is 10000 you are required to find out the depreciation and prepare the generator set account for the years 2012 to 2013 and 2014 to 2015
Answers
Answer:
Depriciation=cost of machine-residual value of asset
=210000-10000
=200000
Per year deprication written off=
Total dep./useful life of machine residual
=200000/10
=20000 dep of each year
Explanation: we assume that accounting year with the help of this you can prepare asset account because my pik is not uploaded here 1st year dep is 10000 due to half year
Answer. :. deprication = T.C - rediusal vale / life year estimate = 210000-10000/10
= 20000
( hints Tc = total cost of asset + expenses incurred to buy assest (IF GIVEN)
Now rate of deprication =. depricated ammount / Tc- rediusal vale × 100
so rate is = 20000×100/
210000(TOtal cost) - 10000(residual value )
so by solving = we get 10% rate of deprication
Explanation:
prepare generator A/c we should multiply 20000×6/12 because date of purchases is 1 oct so deprication is charged to be on 31 March so it makes 6 months
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