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प्रश्न
A firm purchased a plant for ₹ 40,000. Erection charges amounted to ₹ 2,000. The effective life of the plant is 5 years. Calculate the amount of depreciation per year under the straight-line method.
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उत्तर
Calculation of the amount of depreciation
Amount of depreciation = `("Original cost" - "Scrap value")/"Estimated life"`
Original cost = Purchase of plant + Erection charges
= ₹ 40,000 + ₹ 2,000 = ₹ 42,000
Estimated life = 5 years = `(₹ 42,000 - 0)/(5 "years")` = ₹ 8,400
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संबंधित प्रश्न
Answer in One Sentence only:
Which account is credited when depreciation is charged?
Write the word/term/phrase which can substitute the following statement:
Method of depreciation that cannot reach to zero value.
Select the most appropriate answer from the alternatives given below and rewrite the sentence:
Depreciation is charged only on ______ assets.
Complete the following sentence:
______ is the value which an asset realises at the end of its useful life.
Under straight-line method, the amount of depreciation is ______.
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