Question

A machinery which cost Rs 200000 is depreciated at 25% per year using the written down Value Method. At the end of three years, Calculate the net book value of the machinery.

Answer 1

Answer:

a machine that is used for solid liquid is the most important thing to do in the first

Answer 2

GIVEN :  Value of machinery = 2,00,000 ;  Depreciation % = 25%

TO FIND : What is the value of machinery at the end of three year

SOLUTION :

Depreciation is normal wear and tear in the value of machinery.

Depreciation is charged on the fixed asset.

Depreciation charged in the 1st year =

2,00,000 × $\frac{25}{100}$

50,000

Depreciation is 50,000

Value of machinery after depreciation is 1,50,000.

Depreciation charged in the 2nd year

1,50,000 × $\frac{25}{100}$

37,500

Depreciation for the second year is 37,500

Value of machinery after depreciation in the 2nd year is 1,12,500.

Depreciation charged in the 3rd year

1,12,500  × $\frac{25}{100}$

28,125

Depreciation for the 3rd year is 28,125.

Value of machinery in the 3rd year  84,375.

Value of the machinery after 3rd year is 84,375 .