Question

find out the amount of depreciation for the following case under WDV method for the first 5 years: cost 1,20,000; salvage value Rs.10,000; rate of depreciation 25% round the amount to nearest rupee

Answer 1

depreciation amt = 120000-10000
                             =110000

1st  year asset value           = 120000
less : 1st year depreciation =  ( 27500)  [110000*25%]
2nd year book value             =  92500
less : 2nd year depreciation   = (23125)   [92500*25%]
3rd year book value             =   69375
less : 3rd year depreciation   = (17344)   [69375*25%]
4th year book value             =   52031
less : 4th year depreciation   = (13008)   [52031*25%]
5th year book value             =   39023
less : 5th year depreciation   = (9756)   [39023*25%]

Hope its useful ..!!!!