Question

Calculate amount of depreciation to be charged every year from following details :-
Cost of asset Rs. 5,00,000 ; Estimated useful life of Asset 10 years , Scrap value Rs. 50,000.​

Answer 1

Amount of Depreciation =

$\frac{cost \: of \: asset \: - \: scrap \: value}{no \: of \: expected \: life \: years}$

$\frac{500000 - 50000}{10}$

$\frac{450000}{10}$

= 45,000 ( Amount of Depreciation )