Salim & Co bought machine at a cost of Rs.500,000 on January 1,1997 on credit from Sheeraz brothers. Estimated life of the machine is 5 years and scrap value is Rs.50,000.
Required:
Present schedule of depreciation under following methods for 5 years. Last year depreciation should be adjusted to arrive at scrap value:
Straight line method
Diminishing Balance method (Rate 20%)
Answers
Salim & Co bought machine at a cost of Rs.500,000 on January 1,1997 on credit from Sheeraz brothers. Estimated life of the machine is 5 years and scrap value is Rs.50,000.
Required:
Present schedule of depreciation under following methods for 5 years. Last year depreciation should be adjusted to arrive at scrap value:
Straight line method
Diminishing Balance method (Rate 20%)
Answer:
Salim & Co bought machine at a cost of Rs.500,000 on January 1,1997 on credit from Sheeraz brothers. Estimated life of the machine is 5 years and scrap value is Rs.50,000.
Required:
Present schedule of depreciation under following methods for 5 years. Last year depreciation should be adjusted to arrive at scrap value:
Straight line method
Diminishing Balance method (Rate 20%)
Explanation: