A boiler was purchased from abroad for Rs. 10000. Shipping and forward charges Rs. 2000 and expenses of installation amounts to Rs. 8000. Find the balance after three years @10% on diminishing balance method.

Rs 12900

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Rs 14580

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Rs 13800

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Rs 11400

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Solution

The correct option is B
Rs 14580

Particulars Amount

Boiler 10000

Add:Shipping & forwarding charges 2000

Add:Installation expenses 8000

Cost of Boiler 20000

Year Value Depreciation at 10 % WDV

1 20000 2000 18000

2 18000 1800 16200

3 16200 1620 14580

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Particulars	Amount
Boiler	10000
Add:Shipping & forwarding charges	2000
Add:Installation expenses	8000
Cost of Boiler	20000

Year	Value	Depreciation at 10 %	WDV
1	20000	2000	18000
2	18000	1800	16200
3	16200	1620	14580

A boiler was purchased from abroad for Rs. 10000. Shipping and forward charges Rs. 2000 and expenses of installation amounts to Rs. 8000. Find the balance after three years @10% on diminishing balance method.

The correct option is B Rs 14580 Particulars Amount Boiler 10000 Add:Shipping & forwarding charges 2000 Add:Installation expenses 8000 Cost of Boiler 20000 Year Value Depreciation at 10 % WDV 1 20000 2000 18000 2 18000 1800 16200 3 16200 1620 14580

The correct option is B
Rs 14580

Particulars Amount

Boiler 10000

Add:Shipping & forwarding charges 2000

Add:Installation expenses 8000

Cost of Boiler 20000

Year Value Depreciation at 10 % WDV

1 20000 2000 18000

2 18000 1800 16200

3 16200 1620 14580