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Standard XII

Mathematics

Law of Reciprocal

A new machine...

Question

A new machine costing Rs $1, 00, 000$ was purchased by a company on 1st April, 2011. The useful life is estimated to be 5 years and scrap value at Rs $10, 000$ . The production hours for the next 5 years is as follows:
Year Hours
2011-2012 $5, 000$
2012-2013 $10, 000$
2013-2014 $12, 000$
2014-2015 $20, 000$
2015-2016 $25, 000$
Find the depreciation for year 2013-2014 ?

25, 000

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15, 000

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12, 500

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6, 250

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Solution

The correct option is B $15, 000$
Depreciation for the year 2013-2014 can be calculated by :
Depreciable value * Avg production hours/ Total production hours

= 90000*12000/72 = 15000
Depreciable value 100000-10000 = 90000
Total production hours( 5000+10000+12000+20000+25000) = 72000
Avg Production hrs = 72000/5 = 12000

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Year	Hours
2011-2012	$5, 000$
2012-2013	$10, 000$
2013-2014	$12, 000$
2014-2015	$20, 000$
2015-2016	$25, 000$