Question

Question 19.
A boiler was purchased from abroad for ₹ 10,000; shipping and forwarding charges ₹ 2,000, Import duty ₹ 7,000 and expenses of installation amounted to ₹ 1,000.
Calculate the depreciation for the first three years (separately for each year) @ 10% on Diminishing Balance Method.

Answer 1

Explanation:

For the upward motion of the block, we take into account all the forces acting on it: the force of gravity mg, the normal reaction N, and friction Ffr (Fig. 151), and obtain the following equation: The corresponding equation for the downward motion is Let the distance traversed by the block in the upward and downward motion be s. Then the time of ascent t1 and descent t2 can be determined from the equations By hypothesis 2t1 = t2, where 4a2 = a1. Consequently, and finally Read more on Sarthaks.com - https://www.sarthaks.com/238843/block-pushed-upwards-along-the-roof-forming-angle-with-the-horizontal-the-time-the-ascent

Answer 2

Depreciation of

I st year $=Rs2000$

2nd year$=Rs1800$

3rd year$=Rs1620$

Explanation:

Purchased cost of boiler abroad$=Rs10000$

Shipping and forwarding charges$=Rs2000$

Import duty                                     $=Rs7000$

Expenses of installation                 $=Rs1000$

Total cost of boiler                          $=10000+2000+7000+1000$

                                                         $=Rs20000$

Rate of diminishing balance            $=10%$%

Calculate depreciation of first three year

(1).  First year

Depreciation of first year =Boiler cost × 10%

                                          $=20000\times 10%=20000\times 10/100$%$=20000\times 10/100$

                                           $=Rs2000$

Now boiler cost become change after one year

New cost$=Rs20000-Rs2000=Rs18000$

(2).    Second year

Depreciation cost of second year$=18000\times 10%=18000\times 10/100$%$=18000\times 10/100$

                                                        $=Rs1800$

After two years complete the boiler cost become $=18000-1800$

                                                                                   $=Rs16200$

(3). Third year

Depreciation cost of third year$=16200\times 10%=16200\times 10/100$%$=16200\times 10/100$

                                                   $=Rs1620$

After three years of complete the boiler cost become$=16200-1620$

                                                                                         $=Rs14580$

Depreciation of

I st year$=Rs2000$

2nd year$=Rs1800$

3rd year=$=Rs1620$