Question
A company purchased machinery on 1st April 2021 for
₹12,00,000 with an estimated residual value of ₹1,20,000 and useful life of 6 years. Using straight-line method as per Ind-AS 16, what should be the annual depreciation charge?Solution
Depreciation = (Cost – Residual Value) / Useful Life = (12,00,000 – 1,20,000) / 6 = ₹1,80,000
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