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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
Answer in One Sentence only:
What is Fixed Instalment Method?
Answer in One Sentence only:
Which account is debited when expenses are paid on installation of Machinery?
Write the word/term/phrase which can substitute the following statement:
Excess of Selling price of fixed asset over its Written Down Value.
State whether the following statement is True or False with reasons:
Depreciation increases the value of the asset.
Calculate the rate of depreciation under straight-line method from the following information:
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On 1.1.2018 spent ₹ 12,000 on its repairs
Expected useful life of the machine is 4 years
Estimated residual value ₹ 6,000.
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M/s Omkar Enterprise Jalgaon acquired a Printing Machine for ₹ 75,000 on 1st 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 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.
The Annuity Method is most suitable when:
