on 1 April 2009 Mahindra & Company, Sangli purchased two Computers for 37,000. The fixation charges
mounted to ? 3.000. They decided to provide depreciation on Computers @ 15% p.a under Fixed
stament Method
October, 2011, one computer having original cost of 20,000 was sold for 15.000 and on the same
te new Computer was purchased for 30,000
Depreciation was provided annually on 31 March
Show Computer Account for 2009-10, 2010–11, 2011-12.
Answers
Answer:
Depreciation refers to the decrease in the value of the fixed assets due to normal wear and tear, efflux of time or obsolescence due to technology. Thus, it becomes important to measure this decrease in value of an asset and also account for it. There are various methods of providing depreciation through depreciation formula. However, we can broadly classify these methods into Uniform Charge Methods, Declining Charge Methods, and Other Methods.
Explanation:
purchased two Computers for 37,000. The fixation charges
mounted to ? 3.000. They decided to provide depreciation on Computers @ 15% p.a under Fixed
stament Method
October, 2011, one computer having original cost of 20,000 was sold for 15.000 and on the same
te new Computer was purchased for 30,000
Depreciation was provided purchased two Computers for 37,000. The fixation charges
mounted to ? 3.000. They decided to provide depreciation on Computers @ 15% p.a under Fixed
stament Method
October, 2011, one computer having original cost of 20,000 was sold for 15.000 and on the same
te new Computer was purchased for 30,000
Depreciation was provided annually on 31 March
Show Computer Account for 2009-10, 2010–11, 2011-12.annually on 31 March
Show Computer Account for 2009-10, 2010–11, 2011-12.