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 percentage. Round the amount to nearest rupee?

Answer 1

Ist year 120,000× 25%= 30,000

2nd year

w.d.v = 1,20,000- 30,000=90,000

dep. of 2nd year= 90,000×25% = rs.22,500

3rd year w.d.v = 90,000-22,500= 67,500

dep. of 3rd year= 67,500×25%=16875

w.d.v of 4th year= 67500-16875=50625

dep. of 4th year= 50625×25%=12,656.25means rs. 12,660

w.d.v of 5th year 50625-12,660=37965

dep. of 5th year= 37965×25%= 9491.25= 9490