Question

Bhavna purchased a machinery on 1st jan 2018 for rs 25000 which can be used for 5 yrs and the scrap value is zero...calculated annual depreciation​

Answer 1

Hyy....

=> Under straight line method of depreciation,

depreciation expense is calculated as below:

Depreciation = (Cost of Asset - Scrap value)/ Estimated useful life

Depreciation = (Rs. 252000 - Rs. 12000) / 6 years

Depreciation = Rs. 240000 / 6 years

Depreciation = Rs. 40000