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Question
Mr. ‘X’ purchased Furniture on 1st October 2015 at ₹ 2,80,000 and spent ₹ 20,000 on its installation. He provides depreciation at 6% under the straight-line method on 31st March 2016. Calculate the amount of depreciation.
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Solution
Depreciation as per straight line method = Cost of Furniture × Percentage × Period
= `3,00,000 × 6/100 × 6/12`
= ₹ 9,000
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