Question

If the cost of computer is Rs 40,000 and depriciation is to be charged at 8% so the amount of depriciation is ? *

Rs 3,200 p.a

Rs 4,000 p.a

Rs 4,200 p.a
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Answer 1

Explanation:

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If the cost of computer is Rs 40,000 and depriciation is to be charged at 8% so the amount of depriciation is ? *

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The depreciation amount is Rs 3,200

Explanation:

Depreciation is the term of accounting, which is defined as the method of allocating the cost of the physical or the tangible asset over the life expectancy or the useful life of the asset. It represent how much of the asset value has been used up.

Computing the amount of depreciation as:

Depreciation amount = Cost of asset × Rate of depreciation

where

Cost of asset amounts to Rs 40,000

Rate of depreciation is 8%

So, putting the values above:

Depreciation amount = Rs 40,000 × 8%

Depreciation amount = Rs 3,200

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