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प्रश्न
Give the formula to find out the amount and rate of depreciation under straight line method of depreciation.
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उत्तर
Amount of depreciation per year =
`("Original cost of the asset" - "Estimated scrap value")/"Estimated useful life of the asset in years"`
Rate of depreciation =
`"Amount of depreciation per year"/"Original cost" xx 100`
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संबंधित प्रश्न
State whether the following statement is True or False with reasons:
Depreciation is charged on Current Assets only.
State whether the following statement is True or False with reasons:
Depreciation need not be charged when business is making losses.
Complete the following sentence:
Under ______ system, the amount of depreciation changes every year.
Distinguish between straight-line method and written down value method of providing depreciation.
An asset is purchased for ₹ 50,000. The rate of depreciation is 15% p.a. Calculate the annual depreciation for the first two years under the diminishing balance method.
M/s Omkar Enterprise Jalgaon acquired a Printing Machine for ₹75,000 on 1 Oct 2015 and spent ₹5,000 on its transport and installation. Another Machine for ₹45,000 was purchased on 1st Jan 2017. Depreciation is charged at the rate of 20% on the Written Down Value Method, on 31st March every year.
Prepare Printing Machine Account for the first four years.
M/s Omkar Enterprise Jalgaon acquired a Printing Machine for ₹75,000 on 1 Oct 2015 and spent ₹5,000 on its transport and installation. Another Machine for ₹45,000 was purchased on 1st Jan 2017. Depreciation is charged at the rate of 20% on the Written Down Value Method, on 31st March every year.
Prepare Printing Machine Account for the first four years.
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