Original Cost = Rs 126000
Salvage value = Rs 6000
Useful life = 6 year
What will be the book value of the asset as at the beginning of fourth year...
a) 103143 b) 40286 c) 45987 d) 99256
Plz answer this with working.....
using slm depreciation in each year=( 126000-6000)/6=20000
Book value at start of 4th year=126000-20000*3=66000
By sum of digits method we get
Total Depriciation in 3 yrs =(126000-6000)*(6+5+4)/21=85714
Book Value=126000-85714=40286
CAclubindia
