Question

Sukku Limited purchased a machine on 1st July, 2013 for Rs.8,90,000 and 1 point
freight and transit insurance premium paid Rs. 25,000 and Rs.15,000
respectively. Installation expenses were Rs. 40,000 and salvage value after
5 year will be Rs.50,000. Under straight line method for the year ended 31st
March, 2014 the amount of depreciation will be
(A)Rs.1,35,750
(B) Rs.1,81,000
(C) Rs.1,84,000
(D) Rs. 1,38,000​

Answer 1

Answer:

D. 138000

Explanation:

890000 + 25000 + 15000 + 40000 - 50000 / 5 = 184000

for july 2013 to 31 march 2014 = 184000 * 9 / 12 = 138000

Answer 2

"(D) Rs. 1,38,000​"

Explanation:

Machinery at 1st July, 2013 = 890000

Freight and transit = 40000

Insurance premium = 40000

Salvage Value 31st March, 2014 = 50000

Therefore,

Depreciation = 890000+40000+40000 - 50000/5 = 184000

As the Machinery is purchased on 1st July, 2013 and depreciation ended on

31st March, 2014. = 184000 x 9/12 = 138000