M/s Rao purchased a machinery for Rs.1,35,000. Further Rs.15,000 are spent on its installation. If the estimated useful life is 7 years and scrap value is Rs.10,000. Calculate the amount of depreciation.

 

Asked by Topperlearning User | 4th Aug, 2016, 01:26: PM

Expert Answer:

Amount of Annual Depreciation

 

= Cost-Estimated scrap value / Number of years of expected life

= (Rs.1,35,000 + Rs.15,000)-Rs.10,000 / 7 years

= Rs.20,000

Answered by  | 4th Aug, 2016, 03:26: PM