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SANIA

SANIA (Querist)
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09 June 2015 how to solve it R=(1-10^5/100)100

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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09 June 2015 I thing you are asking about calculation of rate under WDV.

Try 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%

You can put the above equation in excel and you will get the rate.

Hope now it will be clear for you.