Question

Calculate 12.5 % pa depreciation on furniture.a) on ₹ 220,000 for 1 yearb) on ₹ 10,000 for 6 months​

Answer 1

we have to calculate 12.5 % depreciation on furniture.

(a) on 220,000 for 1 year

(b) on 10,000 for 6 months.

solution : using formula, FV = PV(1 - r/100)ⁿ

where FV = final value , PV = principal value

r = rate of depreciation and n = duration of time

(a) PV = 220,000 , r = 12.5 % and n = 1 year

so, FV = 220,000(1 - 12.5/100)¹

= 220,000 × 0.875

= 192,500

Therefore the final value will be 192,500

(b) PV = 10,000, r = 12.5 % and n = 6/12 year = 1/2 year

so, FV = 10,000(1 - 12.5/100)½

= 10,000(1 - 0.125)½

= 10,000(0.875)½

= 10,000 × 0.935 = 9,350

Therefore the final value will be 9,350

Answer 2

Answer:

( a ) Depreciation on furniture for $1$ year is ₹ $27500$

( b ) Depreciation on furniture for $6$ months is ₹ $625$

Step-by-step explanation:

In context to the question asked,

We have to calculate the depreciation,

As per data given in the question,

The amount of assets is given as,

For ( a ) ₹ $220000$

      ( b ) ₹ $10000$

As we know that,

Depreciation = Amount $\times$ Period

( a ) Depreciation on furniture for $1$ year

$=> 2,20,000\times 1\times \frac{12.5}{100}$

$=> 27, 500$

Hence, the required depreciation is ₹ $27500$.

( b ) Depreciation on furniture for $6$ months

$=> 10,000\times 1\times\frac{6}{12} \times \frac{12.5}{100}$

$=> 625$

Hence, the required depreciation is ₹ $625$.