Question

depreciation question - A fixed asset was bought for Rs.5000. Its accumulated depreciation is Rs.3000 and rate of depreciation is 20%. Calculate its depreciation expenses for the current accounting period using reducing balance method?
answer is 400 plzzz explain​

Answer 1

Explanation:

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Answer 2

Answer:

The depreciation expenses is Rs. 400

Explanation:

As per the data given in the question,

We have,

Fixed asset- Rs. 5000

accumulated depreciation- Rs. 3000

So, Written Down Value= Rs 5000- Rs 3000

rate of depreciation- 20%

So, depreciation expenses = 20% of 2000

$=\frac{20}{100} \times 2000\\=400$

So, The depreciation expenses is Rs. 400

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