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Give the formula to find out the amount and rate of depreciation under straight line method of depreciation.

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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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पाठ 10: Depreciation Accounting - Very short answer questions [पृष्ठ २२४]

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सामाचीर कलवी Accountancy [English] Class 11 TN Board
पाठ 10 Depreciation Accounting
Very short answer questions | Q II 3. | पृष्ठ २२४

संबंधित प्रश्‍न

State whether the following statement is True or False with reasons:

Depreciation is charged on Current Assets only.


Complete the following sentence:

Depreciation is charged on ______ asset.


A depreciable asset may suffer obsolescence due to ______.


What is sinking fund method?


A manufacturing company purchased on 1st April 2010, a plant and machinery for ₹ 4,50,000 and spent ₹ 50,000 on its installation. After having used it for three years, it was sold for ₹ 3,85,000. Depreciation is to be provided every year at the rate of 15% per annum on the fixed installment method. Accounts are closed on 31st March every year. Calculate profit or loss on sale of machinery.


If the cost of the Computer is ₹ 40,000 and depreciation is to be charged at 8% p.a. Calculate the amount of depreciation.


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.


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 charges of the Motor Car was ₹ 5,000.

Show Motor Car Account for first four years, assuming that the books of accounts are closed on 31st March every year.


The Annuity Method is most suitable when:


The Revaluation Method is best suited for which type of assets?


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