Question

On 1 october 2017 Raju brought a machinery for rs15000 additions made to the machine on 1st April 2019 were rs10000 depreciation is charged at 10% under reducing balance method prepare machinery account for three years assuming that account is closed on 31march every year

Answer 1

Answer:

Depreciation on SLM Basis = 10,000 x 10/100

= RS-1,000.

Depreciation On WDV basis :-

1st year (2005-06)

= 10,000 x 10/100

= RS-1,000.

2nd year (2006-07)

= (10,000 - 1,000) 9,000 x 10/100

= RS-9,00.

Difference in depreciation = Depreciation in SLM - Depreciation in WDV

= 1,000 - 9,00

= RS-100.