Question

On April 1, 2009 Ajay Puschased plant for rs50,000 life of it will be 10 years and its Scrap value after 10 years will be 4000.
on April 1 2010 he again pudchased a machinery of rs 30,000 which life is 10 years and Scrap value is 5000
On 1 April 2011 he again purchased another plant for rs20,000 of which life will be 4 year and Scrap value will be 2000
Prepare plant account upto 31 march 2013​

Answer 1

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As per question

Cost of Plant = Rs 50,000

Useful life = 10 years

Residual value = Rs 5000

Depreciation = Cost-Residual value/Estimated useful life

=50,000-5,000/10

=45000/10

=4500

Also,

rate of depreciation = Annual depreciation/cost of plant x 100

= 4500/50,000 x 100

= 9%