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प्रश्न
Furniture was purchased for ₹ 1,00,000 on 1.7.2016. It is expected to last for 5 years. Estimated scrap at the end of five years is ₹ 10,000. Find out the rate of depreciation under the straight-line method.
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उत्तर
Original cost = ₹ 1,00,000
Scrap value = ₹ 10,000
Estimated life = 5 years
Amount of depreciation = `("Original cost" - "Scrap value")/"Estimates life"`
`= (1,00,000 - 10,000)/(5 "years")`
`= (90,000)/5`
= ₹ 18,000
Rate of depreciation = `"Amount of depreciaton"/"Original cost" xx 100`
`= (18,000)/(1,00,000) xx 100`
= 18 %
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संबंधित प्रश्न
Write the word/term/phrase which can substitute the following statement:
The period for which the asset remains in working condition.
Write the word/term/phrase which can substitute the following statement:
Excess of Selling price of fixed asset over its Written Down Value.
Select the most appropriate answer from the alternatives given below and rewrite the sentence:
Depreciation is charged only on ______ assets.
State whether the following statement is True or False with reasons:
Depreciation is charged on fixed assets.
Do you agree or disagree with the following statement:
By charging depreciation on fixed assets ascertainment of true and fair financial position is possible.
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On 1st April 2015, Farid of Nasik purchased a Motor Car for ₹ 55,000. The scrap value of the Motor Car was estimated at ₹ 10,000 and its estimated life is 10 years. The Registration charge for the Motor Car was ₹ 5,000.
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Solution:
Which depreciation method helps a firm accumulate funds for replacing an asset after its useful life?
