Question

original cost of machiney in 150000 residual value 10000 if depreciation is charged @105 per annum under wdv method then depreciation of 3rd year will be..​

Answer 1

Answer:

Cost : 1,50,000

Depreciation @10% for 1st year: (15,000)

WDV: 1,35,000

Depreciation @10% for 2nd year: (13,500)

WDV: 1,21,500

Depreciation @10% for 3rd year: (12,150)

WDV : 1,09,350

Answer 2

Answer:

Depreciation of 3rd year as per written down value method is 12150.

Explanation:

As per W.D.V. method depreciation is calculated on the opening block of the assets.

Given:

1. Original cost of the Machinery = 150000
2. Residual value = 10000
3. Rate of depreciation = 10%
4. Method of calculation = Written down balance method

Calculation of depreciation for third year:

Opening block of asset -                    150000

Less: Depreciation @ 10%                     15000

Closing value as on first year           135000

Opening block of asset -                     135000

Less: Depreciation @ 10%                      13500

Closing value as on Second year       121500

Opening block of asset -                       121500

Less: Depreciation @ 10%                       12150

Closing value as on Third year          109350