Question

A machinery worth ₹10,500 depreciated by 5%. Find its value after one year.​

Answer 1

Answer:

Value is depreciated by 5% per annum that is one year

So by using the formula

first to find 5% of 10500 and subtract it from 10500

that is

$10500 - ( \frac{5}{100} \times 10500) \\ 10500 - 5 \times 105 \\ 10500 - 525 \\ = 9975$

therefore the amount after an year = Rs 9975

Answer 2

Answer:

Book value = Machinery value - Depreciation value

= 10500 - (10,500×5%)

= 10500 - 525

= Rs. 9,975

Book Value of the Machinery after one year = Rs. 9,975