How to calculate
1- n√ residual value /cost
CS/CMA/PROF./ADV. J.B. Sirvi
(M.COM. CMA CS CA FINAL GDC&A. LLB)
(152 Points)
Replied 20 May 2016
It's simple
Example : cost rs. 10,000 residual value rs. 1000 life of asset 5 year (WDV Method)
Solution :
Formula 1-n√ residual value/cost
Step 1 :- 1-(5√1,000/10,000)x100
Step 2 :- calculator use as follows
1000÷10000=0.1
Use formula like this
a to power x here a=0.1 and x=5/2=2.5
Step for this calculation ans.
1-√0.1 12 time(calculator √ ) 0.9994380034
2- -1 -0.0005619966
3- ×2.5 -0.0014049915
4- +1 0.9985950085
5- ×= 12 time 0.0032
Step 3 ans 0.0032
WDV RATE 1-0.32%=0.68 or 68%
SORTCUT FORMULA ALSO ONLY FOR DEP.
USE Calculator Direct
This 5 year 4 time = and then √ (use as per sum)
1000÷10000×====√ get ans 0.0032 mean 1-0.32=0.68 or 68%
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