Question

Original Cost of a Machinery Rs. 5,00,000; Salvage value Rs. 20,000; Expected
useful life 10 Years. What will be the amount of depreciation for forth year
according to original cost Method? Also specify the rate of depreciation.
Your answer​

Answer 1

Answer:

Hear is your answer

Explanation:

Depreciation in SLM = cost of assets+Installation charges-scrap value/estimated useful life

=100000-2000/5

=98000/5

Annual depreciation=19600

Rate of depreciation = Annual depreciation *100/cost of assets

=19600*100/100000

=19.6%

Have a good day or night

Answer 2

The amount of depreciation for the fourth year according to the original cost method is Rs. 1,92,000, and the rate of depreciation is 9.6% (i.e., 48,000 / 5,00,000 x 100).

Depreciation is an accounting technique for spreading out the expense of a tangible item over the course of its useful life.

The original cost method of depreciation determines the annual depreciation amount as a fixed proportion of the machinery's initial cost. .

The rate of depreciation is calculated as follows:

Rate of Depreciation = (Cost of Machinery - Salvage Value) / Expected Useful Life

= (5,00,000 - 20,000) / 10 = 48,000 per year

Therefore, the depreciation for the fourth year can be calculated as:

Depreciation for Fourth Year = Rate of Depreciation x Number of Years

= 48,000 x 4 = Rs. 1,92,000

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