Question

. The cost of a mini truck is 5,60,000. At the end of the first year, 115 of the cost price. At the end of second year, its value decreased by 12% of the value at end of first year. Find the value of the truck at the end of second year​

Answer 1

Sum of year's digit method :

it is variation of the "Reducing Balance Method". In this case, the annual depreciation is calculated by multiplying the original cost of the asset less its estimated scrap value by the fraction represented by:

(The no. of years of remaining life of the asset) / [(n(n+1) /2]

where, n = no. of years

= 5/[ (5*6)/2]

= 5/15

The depreciation to be written off in first year is :

(Rs.100000 - Rs. 10000) * (5/15) = Ra. 90000 * (5/15) = Rs. 30000

Step-by-step explanation:

I hope it's help you

thank u

mark me as brainlist