Question

Depreciate office furniture by 71/2% Office furniture 10,000

Answer 1

Explanation:

In think it's not 71/2% it is 7.1/2 i.e 7.5%

If then depreciation = 10000×7.5/100 = 750

And even it is 71/2%.. 71/2 = 35.5%

So depreciation = 10000×35.5/100 = 3550

Hope it helps !

Answer 2

Depreciation will be rs.750

Explanation:

Depreciation is the way by which we can calculate the reduction in the value of fixed assets each year.

there are famously two methods by which we can calculate the depreciation :

1. SLM ( straight line method)

2.WDV( written down value method)

so here we can take any formula because the answer will be same in the first year :

office furniture= 10000*7.5% (7 1/2%)

                        = 750

     so, depreciation will be rs.750