Question
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-down value of the machinery as on 31st March 2025 will be:Solution
• WDV at end of Year 1 (31-Mar-2024): 15,00,000 - (15% of 15,00,000) = 15,00,000 - 2,25,000 = ₹12,75,000. • WDV at end of Year 2 (31-Mar-2025): 12,75,000 - (15% of 12,75,000) = 12,75,000 - 1,91,250 = ₹10,83,750.
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