Question

Original Cost of a Machinery Rs. 6,00,000; Salvage value Rs. 60,000. What will
be the amount of depreciation for second year according to diminishing balance
method@ 10% p.a.​

Answer 1

Answer:

Original cost is 600000

ist year depreciation 600000×10%=60000

book value ÷ 600000-60000

= 540000

second year depreciation = 540000×10%=54000