Question

an asset is purchased at cost of Rs.50000.00 it as no salvage value at the end of its life of 10 years it's book value calculator by sinking fund method with 18% intreast at the end of 5 years will be
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Answer 1

Answer:

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Step-by-step explanation:

According to straight line method, the amount of yearl -depreciation is calculated as follows:

Depreciation = (Cost of asset - Scrap value) / Estimated life and,

Depreciation = Rs. ( 50000 - 10000 ) / 10

Depreciation = Rs. 4000

Depreciation rate = (Depreciation expense / Cost of asset) * 100

Depreciation rate = (Rs. 4000 / Rs. 50000 ) * 100

Depreciation rate = 8%