Hema traders purchase a plant for Rs10,000 on the Ist April 2016, installation charges are Rs 2,000 the plant is estimated to have a Scrap value of Rs 1,000 at the end of its useful life of 5 years.Prepare the plant account for the first three years charging depreciation according to straight line method, when the books are closed on the 31st March every year.
Answers
Answered by
8
Answer:
Depreciation SLM
= cost of assets - scrap value/useful life
= 12,000 -1000/5
= 2200
Depr at the end of 5 year will be
= ₹ 2200 * 5
Total Depreciation= ₹11,000
Total value of assets at the end of 5 yrs will be
= Cost of assets - total depreciation
= 11,000 - 11,000
= 0
Similar questions