Machine costing 240000is depricated 18%per annum on reducing balancefind valuue of machine after 6yer also find deprecaition amount 6yer 2year based question
Answers
Step-by-step explanation:
Given:
A machine costing rupees 240000 is depreciated at 18%per annum on reducing balance method.
To find:
find the value of the machine after 6years. Also, find the depreciation amount for the 6th year.
Solution:
Machine costs = Rs 240000
Depreciate percentage =18%
First-year:
=> 240000 x 18/100 = 43200
=> 240000 - 43200 = 196800
Second-year:
=> 196800 x 18/100 = 35424
=> 196800 - 35424 = 161376
Third-year:
=> 161376 x 18/100 = 29047.68 ( Rounded to 29048)
=> 161376 - 29048 = 132328
Fourth-year:
=> 132328 x 18/100 = 23819.04 (Rounded to 23819)
=> 132328 - 23819 = 108509
Fifth-year:
=> 108509 x 18/100 = 19531.62 (Rounded to 19532)
=> 108509 - 19532 = 88977
Sixth-year:
=> 88977 x 18/100 = 16015.86 (Rounded to 16016)
=> 88977 - 16016 = 72961
Hence, the value of the machine after 6 years is Rs 72,961
The depreciation amount for the 6th year is Rs 16016