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Calculation of depreciation

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Querist : Anonymous

Querist : Anonymous (Querist)

18 February 2010 Sir,

Please solve this query as it is very urgent need.

1) The original cost of machinery is Rs. 100000/- , its life is 5 years and the expected salvage value is Rs. 2000/-. then depreciation for 3rd year as per straight line method shall be -

Please reply

Regards
Chetan
email id : Chetan_cares4u@yahoo.co.in

Rahul Gupta

Rahul Gupta (Expert)
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18 February 2010 Since its is straight Line Method..Depreciation for each year will remain same at Rs 19,600
Calculation....

100,000-2,000 = 98,000/5 = 19,600

shakuntala chhangani

shakuntala chhangani (Expert)
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22 February 2010 Absolutely right n the rate of dep will be 19600/1,00,000* 100 = 19.60%
The same question is there in MCQ of CPT Dep Chapter.
Regards, CA Shakuntala Chhangani

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