Question

If original cost Rs 12,60,000, salvage value nil, useful life is 6 years, Find depreciation under sum of digits method

Answer 1

Answer:

Sum of years = 6 + 5 + 4 + 3 + 2 + 1

= 21.

Depreciable amount = 1,26,000.

Depreciation = depreciable amount x no. of years remaining

sum of years remaining

= 1,26,000 x 6

21

= RS-36,000.