Depreciation

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A.SANGEETHA (Querist)
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02 May 2015 Dear Sir/Mam,

Kindly tell me how to solve this formula using Excel and find n..
R={1-(s/c)^1/n}*100 where R=15%,s=5,c=100.

Thanks in advance

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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03 May 2015 You can try calculating WDV rate of Depreciation yourself using below formula:

r = 1-(s/c)^(1/n)

Where,

r = rate of depreciation
s = scrap value
c = cost of assets
n = no. of year of life of assets

For example take Plant & Machinery:

r=1-(5/100)^(1/15)
=18.10%

Just put the above stated formula in excel and then only you can see the result.

Check out depreciation Rate Chart from link given below:

https://www.caclubindia.com/files0512/496179_59179_depreciation_rate_chart_companies_act_2013.pdf