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