Question

an asset is purchased for Rs.50,000 on which depreciation is provided annually according to the straight line method. The useful life is 10 years and the scrap value is 10,000. The rate of depreciation is a)18% b) 8% c) 12% d)10​

Answer 1

Answer:

answer is option d

Explanation:

Depreciation = (Cost price - scrap value)

Useful life of an asset

Rate of depreciation - Depreciation valuel

Cost price of asset

Where,

Cost price = Rs. 50,000, Scrap value = Rs. 10,000, Useful life of asset 10 years Depreciation = Rs. (50000 - 10000)/10

years

Depreciation = Rs 4000

Rate of depreciation Rs. (4000/50000)

* 100

Rate of depreciation = 8%

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Answer 2

b) 8%

The Rate of Depreciation is 8 %

Explanation:

Given :

•The Cost of asset = Rs.50,000

• Scrap Value = 10,000

• Useful life of asset (in years) = 10 Years

• Annual Depreciation under SLM (Straight Line Method)

To find :

• The Rate of Depreciation

Solution :

Calculation of depreciation under

SLM =

• Annual Depreciation :

$\sf{\dfrac{(The \: Cost\: Of \: asset \: - \: Scrap \: Value)}{Useful \: life \: of \: asset}}$

$\sf{\longrightarrow \dfrac{(50,000 \: - \: 10,000)}{10}}$

$\sf{\longrightarrow{\dfrac{40,000}{10}}}$

$\sf{\longrightarrow{\dfrac{40,000}{10} \: = \: 4,000}}$

$\longrightarrow$ 4,000

Annual Depreciation = Rs 4,000

★ Rate of Depreciation =

$\sf{\dfrac{Amount \: of \: Depreciation}{Cost \: of \: asset} \times 100}$

$\longrightarrow{\sf{\dfrac{4,000}{50,000} \times 100}}$

$\longrightarrow$ 0.8 × 100

$\longrightarrow$ 8 %

Rate of Depreciation = 8 %

∴ b) 8%

The Rate of Depreciation is 8 %