Question

Mustration 2
X Co. Ltd., purchased a plant on 1.4.2007 at a cost of 45,000. The worlding life of the
plant is estimated to be 4 years. The scrap value of the same is estimated at 5.000 at the
end of the fourth year, Calculate the amount of depreciation and prepare Plant Account
and Depreciation Account for the 4 years ending 31.3.2011 under the straight line method.
(B.S.E.A., Sr., 2008 Set 1)
Solution
of Annual Depreciation​

Answer 1

Answer:

How much amount will be shown in Income and Expenditure Account in the following case? <br> {:("","1-4-2009","31-3-2010"),("Creditors for Stationery"," 8,000"," 6,000"),("Stock of Stationery"," 3,000"," 3,200"):} <br> During 2009-10 payment made for Stationery was Rs 60,000.

Explanation:

mark me as abrainlist

Answer 2

The plant will be depreciated by 10,000 every year.

GIVEN : A plant is purchased and scrap value after four years.

TO FIND : Amount of depreciation

SOLUTION:

As we know,

Depreciation refers to the reduction or decrease in the value of assets that is caused over a period that may occur due to casual wear and tear and usage.

In this Question,

1. The asset that is the plant was initially purchased for 45,000 on 1.4.2007.
2. The estimated life is taken as 4 years and the scarp value is taken as 5,000.

Therefore the depreciation is taken every year =        10,000

                (45,000/4 - 5,000)

For this question, the Straight Line Method is used for computing the depreciation which means the asset is decreased at the same rate and initial cost.

Kindly find the plant account attached.

#SPJ2