Question

The cost of a machine is 20,00,000. Two years later the book value is 10,00,000. The Straight-line
percentage depreciation is
la 50%
(b)
33-1/3%
(c)
25%
The ans gvn., is 25%.
Can u pls do this sum? ​

Answer 1

This is an mcq question

Explanation:

we need to check each and every option which meets the requirement of book value worth ₹10,00,000 after 2 yrs.

for eg.

if we consider option (a) it is 50%p.a depreciation

then it would result as like

=20,00,000 - (20,00,000*50%*2years)= then the book value result is zero(which is wrong)

if we consider option (b) it is 33.33%p.a depreciation

then the book value result as 6,66,666( which is again wrong)

if we consider option (c) it is 25%p.a depreciation

the book value after 2 yrs would result as

=20,00,000 - (20,00,000*25%*2years)

=10,00,000( which is correct as per question)

* if the question given without mcq, then directly it is an incomplete information.

Answer 2

Answer:

The second formula which is applied is also a formula to find depreciation using percentage..But I had already found the amount what I need is the % of that amount so I have applied this formula and shifts some values to get %..

Explanation:

Hope it helps you..

If you have any question then feel free to ask me..