Math solution

1). original cost=136000,salvage value10000,usefullife 6 yrs.depriciation for the fourth year under sum of year digit method will be

a).6000                                                                                         b).12000

c).18000                                                                                         d).24000.

2).cost of lease paid 20000.annuity factor @ 5%interest for 4 yrs is re 0.2820.the net charge to p/l a/c is

a).5640                                                                                                  b).1000

c).4640                                                                                                   d).none

3).cost of lease paid 20000,annuity factor @ 5%interest for 4 years is 0.2820.refundable deposit of 2000after 4 yrs.the net change to p/l account is

a).5640                                                                                                     b).5176

c).1000                                                                                                       d).4176.