Question

J.P. Ltd. purchased a machine for Rs. 15,000 on 1st April 1997, Depreciation is .provided @ 10% on written down value method. Depreciation for 1998-99 will be:

• A. Rs. 750
• B. Rs. 1,350
• C. Rs. 1000
• D. Rs. 1,900

Answer 1

Answer: (B)

Rs. 1,350

Calculation of depreciation under WDV method :

Original cost of asset Rs. 15000

Less : depreciation @ 10% p.a for first year (1500)

WDV of Asset for second year 13500

Less : depreciation @ 10% p.a for second year (1350)

WDV of Asset for third year 12150

Therefore, depreciation for second year under written down value method of machine cost Rs. 15000 @ 10% is Rs. 1350