The Original cost of an asset is Rs 5, 00,000, and the depreciation is charged @ 10% p.a. at Written down value Method. Calculate the same for 5 years.
Answers
Answer:
Under written down value of method of charging depreciation, depeciation is calculated on WDV as follows:
Original cost Rs. 600000
Less : Depreciation @ 10% p.a. (60000)
Written Down Value 540000
Less : Depreciation @ 10% p.a. (54000)
Written Down Value 486000
Less : Depreciation @ 10% p.a. (48600)
Written Down Value 497400
Depreciation in third year under WDV method is Rs. 48600
Answer:
Explanation:
Original cost of the asset = ₹ 5,00,000
Depreciation for 1'st year = 50,000
Book value at the end of 1'st year = 4,50,000
Depreciation for 2'st year = 45,000
Book value at the end of 2'st year = 4,05,000
Depreciation for 3'st year = 40,500
Book value at the end of 3'st year = 3,64,500
Depreciation for 4'st year = 36450
Book value at the end of 4'st year = 3,28,050
Depreciation for 5'st year = 32,805
Book value at the end of 5'st year = 2,95,245