Depreciation

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 February 2011 Dear Sir/Madam

On 1.1.2005, a machine costing Rs.10,000 and a piece of furniture costing Rs.20,000 was purchased. Depreciation is provided @ 5% on furniture and 10% per annum on machine. The depreciation for the year ended 31st March, 2005 should be:
(a) Rs.1,000.
(b) Rs.300
(c) Rs.1,250
(d) None of the three.

ANS: Rs. 1,250

Please tell how to calculate

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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20 February 2011 Answer is wrong.

In Accounts Depreciation is calculated on day basis.

On Machinery---

(10000*10%)*90/365= Rs 247

On Furniture---

(20000*5%)*90/365= Rs 247

90Days--(31 Jan, 28 Feb,31 March)

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