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प्रश्न
A company purchased a building for ₹ 50,000. The useful life of the building is 10 years and the residual value is ₹ 5,000. Find out the amount and rate of depreciation under the straight-line method.
उत्तर
Calculation of the amount of depreciation:
Original cost = ₹ 50,000
residual value = ₹ 5,000
Estimated life = 10 years
Amount of depreciation = `("Original cost" - "Scrap value")/"Estimates life"`
= `(50,000 - 5,000)/(10 "years")`
= `(45,000)/10`
= ₹ 4,500
Calculation of rate of depreciation:
Rate of depreciation = `"Amount of depreciaton"/"Original cost" xx 100`
`= (4,500)/(50,000) xx 100`
= 9 %
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संबंधित प्रश्न
Answer in One Sentence only:
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Write the word/term/phrase which can substitute the following statement:
The type of asset on which depreciation is charged.
Write the word/term/phrase which can substitute the following statement:
Excess of Selling price of fixed asset over its Written Down Value.
State whether the following statement is True or False with reasons:
The Profit or Loss on sale of fixed asset is ascertained only after charging depreciation.
State whether the following statement is True or False with reasons:
Depreciation need not be charged when business is making losses.
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Correct the following statement and rewrite the statement.
Underwritten down value method depreciation is calculated on the original cost of an asset.
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