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CPT 677 views 1 replies

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A company purchased a plant for Rs 10000. It is expected that its useful life will be 3 years and salvage value Rs 1000. You are required to determine the rate of depreciation and amount of depreciation to be provided in the first year as per written down value method.

can anyone tell me how to calculate this

thanks in advance:)

Replies (1)

MOHIT MAHAJAN

LCS ACA

2050 Points Joined September 2007

Formula for calculating depreciation rate by WDV method is-:

1 – (Salvage value)^1/life

Cost

In your quest.-:

1 – (1000)^1/3

10,000

(I dont know how to solve the bracket part i.e.(0.1)^1/3 by mathematical technique. I have used a shortcut method to solve it as told by our teacher.)

1 - 0.464225637

Dep. rate= 53.58%

If you have answer, plz verify from it.