Book value of machinery is Rs.3,00,000 .
Rate of depreciation is 15%
New addition to machinery was made on 1/1/2015 of Rs.20000
What will be the depreciation for year ending 31/3/2015?

Rs.46500

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Rs.45750

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Rs.45000

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Rs.50000

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Solution

The correct option is B Rs.45750
Book Value of Machinery is Rs.300000
Addition to Machinery on 1/1/2015 for Rs.20000
Rate of Depreciation is 15%

Depreciation will be calculated as:

Depreciation @15% on Rs.300000 Rs.45000
Depreciation @15% on Rs.20000 for 3 months =Rs.20000 15% 3/12
=Rs.750
Total Depreciation will be Rs.45000+Rs.750= Rs.45750

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