Question

Cost of a machine is 420000 with scrap value Rs.20000. what is the depreciation amount for IInd year as

per written down value method? Charge depreciation @10%p.a.

a. Rs.37800 b. Rs.42000 c. Rs.46200
​

Answer 1

Explanation:

Calculation of depreciation under WDV method :

Original cost of asset 252000

Less : Depreciation for first year @ 10% (25200) WDV of asset in second year 226800

Less : Depreciation for second year @ 10% (22680)

WDV of asset in third year 204120

Thereore depreciation of asset at the of second year of cost Rs. 252000 @ 10% is Rs. 22680.

Answer 2

Answer:

Depreciation = 420000 × 10÷100 = ₹ 42000

= ₹ (420000 - 42000)× 10÷100

= ₹ 378000×10÷100

= ₹ 37800

Explanation:

1st year= 420000×10÷100 = ₹ 42000

2nd year = (420000 - 42000)×10÷100 = ₹ 37800