Question

original cost of an asset is Rs. 1,26,000 Residual value is Rs 6000. useful life is 6 year. the rate of depreciation under state line method will be​

Answer 1

$Calculation \: of \: depreciation \: under \: SLM \: = </p><p></p><p>Original \: cost \: - \: Salvage \: Value / Useful \: Life =</p><p></p><p>126000 \: - \: 6000 / 6 = Rs \: 20000</p><p></p><p></p><p>$

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Answer 2

Concept Introduction: All businesses run in Profit and loss.

Given:

We have been Given: Original Cost is

$rs.126000$

Residual Value is

$rs.6000$

Useful Life is

$6 \: years$

To Find:

We have to Find: The rate of Depreciation.

Solution:

According to the problem, The Depreciation cost is

$\frac{(126000 - 6000)}{6} = \frac{120000}{6} = rs.20000$

therefore the rate of Depreciation is,

$\frac{20000}{126000} \times 100 = 15.87\%$

Final Answer: The rate of Depreciation is

$15.87\%$

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