Question

a second hand machine was purchased on 1st january 2010 for rupees 30,000 and repair charges amounted to rupees 6000 it was installed at a cost of rupees 4000 on 1st july 2011 as a machine was purchased for rupees 26000 on 1st july 2012 the first purchase machine was sold for rupees 30000 on the same day another machine was brought rupees 25000 on 31st december 2012 the machine brought on 1st july 2011 was sold rupees 20000 accounts are closed every year on 31st december depreciation is written at 15% per year
show depreciation for three years ​

Answer 1

Answer:

Depreciation for 4th year :-

= WDV x rate of depreciation

= 1,89,540 x 10/100

= RS-18,954.

Working note:-

Depreciation for the 1st year :-

= Depreciable value x rate

= 2,40,000 + 20,000 x 10/100

= RS-26,000.

Depreciation for the 2nd year :-

= (2,60,000 - 26,000) 2,34,000 x 10/100

= RS-23,400.

Depreciation for the 3rd year :-

= (2,34,000 - 23,400) 2,10,600 x 10/100

= RS-21,060