Question

calculate rate of depreciation under straight line method​

Answer 1

Explanation:

• First, we need to find the depreciation amount as by using the SLM:
• Depreciation amount = Machine cost - Residual value of machine/ Useful life of assets.
• = Rs 12,000.
• Now computing the rate of depreciation as:
• Rate of depreciation = Depreciation amount / cost of machine × 100.
• = 10%