Question

The W.D.V. of an assets after three years of depreciation
on reducing balance method @ 15% p.a. is 49,130. What
was its original value.​

Answer 1

Step-by-step explanation:

Given The W.D.V. of an assets after three years of depreciation  on reducing balance method @ 15% p.a. is 49,130. What  was its original value.

• So value of asset at the end of 2nd year = value at the end of 3rd year x 100 / 85
• = 49130 x 100 / 85
• = Rs 57,800
• Value of asset at the end of 1st year = value at the end of 2nd year x 100 / 85
• = 57,800 x 100 / 85
• = Rs 68,000
• So original value = value at the end of 1st year x 100 / 85
•                            = 68,000 x 100 / 85
•                             = Rs 80,000

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