A company purchased plant for 50,000. The useful life of the plant is 10 years and the residual value is 5,000. The management wants to depreciate it by straight line method. Rate of depreciation will be:

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

10%

No worries! We‘ve got your back. Try BYJU‘S free classes today!

None of the above

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is B 9%
Depreciation = $\frac{50, 000 - 5, 000}{10} = 4, 500$
Rate of depreciation= $\frac{4, 500}{50, 000} X 100$ = 9%

Suggest Corrections

Similar questions

Q. A Company purchased plant for Rs. 50000. The useful life of the plant is 10 years and the residual value is Rs. 5000. The management wants to depreciate it by straight line method. What will be the rate of depreciation?

Q. An asset is purchased for Rs. 50,000 on which depreciation is to be provided annually according to the straight line method. The useful life to the asset is 10 years and the residual value is Rs. 10,000. The rate of depreciation is?

Q. An asset is purchased for Rs.

50, 000

on which depreciation is to be provided annually according to the straight line method. The useful life of the asset is 10 years ad the residual value is Rs.

10, 000

. The rate of depreciation is _____________.

A company purchased a vehicle for Rs 6000. It will be used for 5 years and its residual value is expected to be Rs 1000. What is the annual amount of deprecation using straight line method of depreciation?

Q. Suraj Ltd. purchased a machine on 1.1.2003 for Rs 1,20,000. Installation expenses were Rs 10,000. Residual value after 5 years Rs 5,000. On 1.7.2003, expenses for repairs were incurred to the extent of Rs 2000. Depreciation is provided under straight line method. Depreciation rate = 10%. Annual Depreciation = _________

Join BYJU'S Learning Program

A company purchased plant for 50,000. The useful life of the plant is 10 years and the residual value is 5,000. The management wants to depreciate it by straight line method. Rate of depreciation will be:

The correct option is B 9%Depreciation = 50,000−5,00010=4,500Rate of depreciation= 4,50050,000X100 = 9%

The correct option is B 9%
Depreciation = $\frac{50, 000 - 5, 000}{10} = 4, 500$
Rate of depreciation= $\frac{4, 500}{50, 000} X 100$ = 9%