Question

Q11 An assets was purchased for Rs 64500 on 1st april 2012 . The scrap value was estimate to be Rs 500 at the end of assets 8 year life. Straight Line method of depreciation was used. The accounting year ends on 31st march every year . The asset was sold for Rs 600 on 31st march 2019. Calculate the following: 3 (a) The depreciation expenses for the year ended 31st march 2013 (b) The net book value of the assets on 31st march 2016 (c) The gain or loss on sale of the assets on 31st march 2018.

Answer 1

(a) Depreciation amount for the year ended 31st March 2013 = Historical cost - scrap vlaue /useful life

= 64,500 - 500 / 8

= 8,000

(b) Book value = Historical cost - Till date depreciation

= 64,500 - 32,000

= 32,500

(c) Gain&loss = sale value - book value (book value as per above sum)

= 600 - 16,500

= - 15,900