Accountancy, asked by ayushsoni10, 1 year ago

plant =100000 dep =5% charge after 5 years value


sujiritha95: which method
kajalchawla: straight or reducing balance method of depreciation??
sujiritha95: ok thank u .
sujiritha95: is the question complete
kajalchawla: no... if nothing given, we can take straight line method of depreciation.. i jus asked to confirm any method of depreciation mentioned in the question??

Answers

Answered by kajalchawla
0

By which method of depreciation you want to calculate the value?

Answered by sujiritha95
5

* I assume depreciation method is straight line method

Given

Plant cost = 100000

Depreciation rate = 5%

--------------------------------------------------------------------------------------------------------------

Depreciation amount =( Plant cost - scrap value )  * 5%

                                   =( 100000 - 0)* 5%

                                   = 100000*5%

                                   = 5000

Depreciation amount for 5 years = 5000* 5

                                                       =25000

Plant value on end of 5 year = plant cost - depreciation for 5 years

                                                 = 100000 - 25000

                                                  =75000

Therefore plant value on end of 5th year = 75000

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