Question

cost of the machine is Rs. 5,20,000, residual mule 20,000. According to the decreasing balance method, what will be the amount of depreciation in the second year, if 10% annual depletion occurs? ​

Answer 1

Step-by-step explanation:

Cost of the machine=520000

decrease in percentage everyyear=10%

let us take the cost of machine as 100x

so

100x=520000

x=520000/100

x=5200

so

10x=10%

so

x=5200x10

26000 Is the depreciation of cost

Answer 2

Answer:

Given:

• Cost of the machine is Rs. 5,20,000, residual mule 20,000. According to the decreasing balance method.

Find:

• What will be the amount of depreciation in the second year, if 10% annual depletion occurs?

Calculations:

⇢ 520000/100

⇢ 5200

We know that 10 is the given percentage:

⇢ 5200 × 10

⇢ 52000