Aircrafts and HENCU|Railway siding, locomotives, rolling stoCkS alnu lIll15Office equipmentsComputers and data processing units- servers and networksGeneral Laboratory equipmentLaboratory equipment used in educational institutionsElectricals installations and equipmentHydraulic works, pipelines and Sluices6.101015ILLUSTRATIONSStraightline method: [Fixed percentage on origina! cost]Illustration 1A company purchased a plant for Rs. 50,000. The useful life of the plant is 10years and the residual value is Rs. 10,000. Find out the rate of depreciation underthe straightline method.[Periyar, BBA, May 2006|[Bharathidasan, B.Com., Nov. 2005|L [Madras, B.Com., Sept. 1989|Solution:Amount of DepreciationCost- Estimated Scrap ValueNo. of years of expected life50,000-10,000Rs. 4,000%3D10 yearsRate of DepreciationDepreciationx 100Original cost of PlantIllu

Depreciation is the allocation of cost of asset over the useful life of the asset. This can be…

llustration 1 A company purchased a plant for Rs. 50,000. The useful life of the plant is 10 years and the residual value is Rs. 10,000. Find out the rate of depreciation under the straightline method.

llustration 1 A company purchased a plant for Rs. 50,000. The useful life of the plant is 10 years and the residual value is Rs. 10,000. Find out the rate of depreciation under the straightline method.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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