how we do written down methods in deprication
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see written down method is the method which is done like below
a machine worth rs.500000 is purchased and the co. decided to use wdv the machine is going to be sold after 4 years the rate is 10%p.a.
the dep. for first year will be 50000
the balance left in the machinery ac.will be 450000 which will be transfered to the next year as opening balance
for the next year dep. will be charged on 450000 that is 45000 the balance left in the machinery ac. for the second year will be 405000
and this process will go on to the date when the machine is sold
a machine worth rs.500000 is purchased and the co. decided to use wdv the machine is going to be sold after 4 years the rate is 10%p.a.
the dep. for first year will be 50000
the balance left in the machinery ac.will be 450000 which will be transfered to the next year as opening balance
for the next year dep. will be charged on 450000 that is 45000 the balance left in the machinery ac. for the second year will be 405000
and this process will go on to the date when the machine is sold
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