Question

On Ist January 2012 a machine was purchased for Rs. 60,000. What will be the cost of the
machine after three years, if depreciation is charged on fixed instalment method and rate
of depreciation is 10% yearly. Prepare machine account.
[Ans. Balance after three years Rs. 42,000.]​

Answer 1

Answer:

Cost of machine 2012 = 60,000

early depreciation charge = 10%

so, depreciation after 3 yrs = 30%

cost of machine = 30÷100× 60,000

=42,000