Question

The cost of machinery is Rs. 7,80,000 with salvage value Rs. 30,000. What is the depreciation

amount for the 2nd year as per the WDV method? Charge depreciation @10% per annum​

Answer 1

Answer:

Calculation of depreciation under WDV method :

Original cost of asset 252000

Less : Depreciation for first year @ 10% (25200) WDV of asset in second year 226800

Less : Depreciation for second year @ 10% (22680)

WDV of asset in third year 204120

Thereore depreciation of asset at the of second year of cost Rs. 252000 @ 10% is Rs. 22680.

Explanation:

the same method

Answer 2

Answer:

Explanation:

Written value down method = ( Cost of Assets - salvage value ) × Rate of depreciation .

Calculation of depreciation under WDV method :

Original cost of asset                                                                     7,80,000

salvage value                                                                               Rs. 30,000

                                                                                                        7,50,000

Less : Depreciation for first year @ 10%                                       ( 75,000)                                                                                           WDV of asset in second year                                                       675,000

Less : Depreciation for second year @ 10%                                ( 67500)

WDV of asset in third year                                                             607,500

The depreciation of the second year at 10% on Machinery cost 7,80,000 is  607500.