Question

on 1st january 2000, a machinery of the cost of ₹40,000 is bought . estimated scrap value is ₹5,000 & its expected life is five years calculate the annual depreciation on the machinery

plz find out this answer itz urgent ​

Answer 1

Answer:

The amount of depreciation will be ₹ 7,000

Explanation:

Given :

• The original cost on the Asset = ₹ 40,000

• Scrap Value = ₹ 5,000

• Expected life of Asset (in years) = 5 Years

To find :

• Amount of depreciation

Solution :

★  Annual Depreciation :

Annual Depreciation = (Total cost of Asset - Scrap Value) / Expected life of Asset

• Annual Depreciation :

$\boxed{\sf{\dfrac{(Total\:Cost\:of\:Asset \: - \: Scrap \: Value)}{Expected \: life \: of \: Asset}}}$

$\sf{\longrightarrow{\dfrac{40,000 \: - \: 5,000}{5}}}$

$\longrightarrow{\sf{\dfrac{35,000}{5}}}$

$\longrightarrow$ 7,000

Annual Depreciation = ₹ 7,000

Therefore,

The amount of depreciation will be ₹ 7,000