Bank purchased a computer on 01.03.2015 at a cost Rs. 50,000, estimated life is 8 years, amount of depreciation under straight-line method will be __________.

Rs. 6,250

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

Rs. 7,430

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

Rs. 5,000

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

Rs. 4,590

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

Open in App

Solution

The correct option is A
Rs. 6,250

Depreciation
= Rs. $\frac{50, 000}{8}$
= Rs. 6,250.

Suggest Corrections

Similar questions

If value of an asset is Rs 9,00,000, scrap value is Rs 1,25,000, estimated life is 10 years, then the cost of depreciation under straight-line method will be-

Q. Dinesh Garments purchased a machine for Rs. 50,000 and spent Rs. 6,000 on its erection. On the date of purchase, it was estimated that the effective life of the machine will be ten years and after ten years its scrap value will be Rs. 6000. The amount of depreciation for second year on straight-line basis is:

Q. Dinesh Garments purchased a machine for Rs. 50,000 and spent Rs. 6,000 on its creation. On the date of purchase it was estimated that the effective life of the machine will be ten years and after ten years its scrap value will be Rs. 6,000. The amount of depreciation for each year on straight line basis is :

Q. An asset is purchased for Rs.

50, 000

1

st January. The life of the machine is estimated to be

5

years. It is decided to provide depreciation under annuity method by charging

5 %

interest. The annual depreciation will be ____________.

Q. Purchase Price of Machine Rs. 1,50,000, Installation Charges Rs. 50,000, Residual Value Rs. 81,920, Useful life 4 years, the amount of depreciation under WDV Method for the third year will be:

Join BYJU'S Learning Program

Bank purchased a computer on 01.03.2015 at a cost Rs. 50,000, estimated life is 8 years, amount of depreciation under straight-line method will be __________.

The correct option is A Rs. 6,250 Depreciation = Rs. 50,0008 = Rs. 6,250.

The correct option is A
Rs. 6,250

Depreciation
= Rs. $\frac{50, 000}{8}$
= Rs. 6,250.