A machinery worth BD20,000 has a lifetime of 10 year and a salvage value of Rs. 1500. Calculate the accumulated depreciation and book value at the end 10th year by if annual interest rate is 9% using all the Depreciation methods. Show the calculation in a table for all years.
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
A machinery worth BD20,000 has a lifetime of 10 year and a salvage value of Rs. 1500. Calculate the
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