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CBSE Class 11-commerce Answered

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 | 04 Aug, 2016, 01:26: PM
answered-by-expert 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 | 04 Aug, 2016, 03:26: PM
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