Question
Cost of machine Rs.1,35,000. Residual value Rs. 5,000.
Useful life is 10 years. The company charged depreciation for the first 5 years on straight line method. Later on, it reviewed the useful life and decided to take it as useful for another 8 years. Depreciation amount for 6th year will be:Solution
Date   Particulars    Amount         Amount 
Note: In case of revaluation, the depreciation is calculated on the total revalued amount over a period of balance useful lives assessed on the date of revaluation. New cost for the purpose of depreciation will be gross cost less accumulated depreciation on the date of revaluation.
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