Question

Conpute costing rs 200000 was purchasyin year 1 and has an effective life of 5 years. What will be the written down value at the end of three?

Answer 1

Explanation:

Depreciation = Book value x Depreciation rate

Book value = Cost - Accumulated depreciation

Depreciation rate for double declining balance method

= Straight line depreciation rate x 200%

Depreciation rate for 150% declining balance method

= Straight line depreciation rate x 150%