Question

a machinery was purchase for RS.17000 on 1.10.2009 installation expenses incurred was RS.30000 account wara closed on 31st March and depreciationis charged at 10% written down value method.on 31.3.2011 .it was sold for RS.10.00​

Answer 1

Explanation:

ANSWER

Calculation of rate of depreciation of car p.a. :

Particulars

Amount (Rs.)

Less:

Less:

Book value of car as on 1.04.08

Sales value of asset as on 31.03.09

Loss on sales

Depreciation on car for the year 1.04.08 - 31.03.09

300000

(165000)

(75000)

60000

Rate of depreciation = (Depreciation on Asset / book value of asset) * 100

Rate of depreciation = Rs. (60000/300000) * 100

Rate of depreciation = 20%