Question

A machine is purchased for Rs.2,00,000. The residual value at

the end of its expected useful life of 4 years is estimated at Rs.

1,40,000. The amount of depreciation for the first year ending

on 31st March 2020, if this machine is purchased on 1st

October 2019 is Rs._____.​

Answer 1

Date Particulars Amount (₹) Date Particulars Amount (₹)

2015 2016

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

2016 2017

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

2017 2018

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

2018 2019

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