A company bought machinery for Rs. 50,000 and the salvage value at the end of 5 years is Rs. 5,000. The company charges depreciation using SLM method. Which of the following is correct?

Depreciation Account Debit 9,000

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Machinery Account Debit 10,000

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Depreciation Account credit 10,000

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Machinery Account Debit 9,000

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Solution

The correct option is A
Depreciation Account Debit 9,000

Particulars Amount (Rs.)

Cost of Asset 50,000

Less: Salvage value 5,000

Depreciable value 45,000

Depreciation 9,000 (45,000/5)

The correct entry would be

Depreciation A/c Dr. 9,000

To Machinery A/c 9,000

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Particulars	Amount (Rs.)
Cost of Asset	50,000
Less: Salvage value	5,000
Depreciable value	45,000
Depreciation	9,000	(45,000/5)

A company bought machinery for Rs. 50,000 and the salvage value at the end of 5 years is Rs. 5,000. The company charges depreciation using SLM method. Which of the following is correct?

The correct option is A Depreciation Account Debit 9,000 Particulars Amount (Rs.) Cost of Asset 50,000 Less: Salvage value 5,000 Depreciable value 45,000 Depreciation 9,000 (45,000/5) The correct entry would be Depreciation A/c Dr. 9,000 To Machinery A/c 9,000

The correct option is A
Depreciation Account Debit 9,000

Particulars Amount (Rs.)

Cost of Asset 50,000

Less: Salvage value 5,000

Depreciable value 45,000

Depreciation 9,000 (45,000/5)

The correct entry would be

Depreciation A/c Dr. 9,000

To Machinery A/c 9,000