Question
A vehicle purchased for ₹8,00,000 has an estimated
useful life of 5 years and a residual value of ₹1,00,000. Using the Straight-Line Method, the depreciation for the 2nd year will be:Solution
Annual Depreciation = (Cost – Residual Value) / Useful Life = (8,00,000 – 1,00,000) / 5 = ₹1,40,000. Under SLM, depreciation is constant every year.
A machine costing ₹8,00,000 has a useful life of 5 years and scrap value of ₹50,000. Using WDV method at 30%, what will be the book value at the end...
Transaction is referred as which event in accounting?
Under the Written Down Value (WDV) method, depreciation is:
A company buys a machine for ₹12,00,000 and expects to use it for 8 years with residual value ₹80,000. Under straight-line method, annual depreciati...
Company X acquired equipment costing ₹5,00,000 on 1-Jan-Year1; useful life 5 years, no residual. It capitalises borrowing costs of ₹30,000 related t...
Which of the following is NOT a method of charging depreciation?
If the capital of a business is 230000, liabilities are 50000, loss 80000, then asset will be?
A company purchased machinery on 1st April 2023 for ₹15,00,000. It charges depreciation @15% p.a. under the Diminishing Balance Method. The written-do...
A machine costing ₹8,00,000 has a salvage value of ₹80,000 after 10 years. The company follows Straight Line Method (SLM). During the 4th year, it s...
The primary cause of depreciation is:
