Question

Original cost of asset $800000$
Written down value : $500000$
Rate of depreciation : $10$%
Calculate depreciation under written down value.

• A. $50,000$
• B. $45,000$
• C. $55,000$
• D. None of these

Answer 1

Answer: (A)

$50,000$

Depreciation under written down value method is calculated on the basis of written down vakue of asset.

Formula for charging depreciation under written down value method is:

Depreciation = Written doen value of assets * Rate of depreciation

Depreciation = Rs. 500000 * 10%

Depreciation = Rs.50000