Question

On 1st April 2012 a machine was purchased for 50000 rate of deprec5is 10%p.a. what amount will be charged as depreciation on 31st Dec. 2012

Answer 1

50000×10÷100=5000 is depreciation on machinery

Answer 2

Given: Original value of the machine as on 1st April, 2012 = Rs. 50,000

           Rate of depreciation = 10% p.a.

To find: Depreciation amount to be charged as of 31st December 2012

Solution:

Given that,

Original price of the machine = Rs. 50,000

Rate of depreciation = 10% p.a.

The period to be considered to find the amount of depreciation is from 1st April 2012 to 31st December 2012 i.e., 9 months.

∵ $Depreciation = Original \ value * \frac{depreciation \ rate}{100}$

Depreciation for 9 months = $50,000*\frac{10}{100}* \frac{9}{12} = Rs. \ 3,750$

Hence, Rs. 3,750 will be charged as depreciation on 31st December 2012.