CameraIcon

SearchIcon

MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Analysing Comparative Statement of Profit and Loss

Original Cost...

Question

Original Cost = Rs. 1,00,000. Life = 5 years. Expected salvage value = Rs. 2,000
Rate of depreciation p.a.as per straight line method is _______.

A

20.0%

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

B

19.8%

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

C

19.6%

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

D

19.4%

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

Open in App

Solution

The correct option is C 19.6%
Depreciation in SLM = cost of assets+Installation charges-scrap value/estimated useful life
=100000-2000/5
=98000/5
Annual depreciation=19600
Rate of depreciation = Annual depreciation 100/cost of assets
=19600100/100000
=19.6%

Suggest Corrections

thumbs-up

0

Similar questions

Q. Original cost of an asset was Rs.

1, 00, 000

. Life 5 years. Expected salvage value was Rs. 5,000. Hence Depreciation for 3rd year as per straight line method is ___________.

Q. Original Cost = Rs

1, 00, 000

5

years. Expected salvage value = Rs

2, 000

. What will be the rate of depreciation p.a?

Q. Original cost of an asset was Rs.

1, 00, 000

. Life 5 years. Expected salvage value was Rs. 5,000, then rate of depreciation p.a will be _______.

Q. Original cost of a machine was Rs.

2, 52, 000

; Salvage value was

12, 000

. Useful Life was 6 years, Annual depreciation under Straight Line Method will be __________.

Q. Chetan International Ltd. acquired a machine costing Rs.

50, 000

having estimate useful life of 5 years. The expected salvage value of the machine after 5 years is Rs.

5, 000

. Calculate rate of depreciation according to Double Declining Method.

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Comparative Financial Statement

ACCOUNTANCY

Watch in App

explore_more_icon

Explore more

Analysing Comparative Statement of Profit and Loss

Standard XII Accountancy

Join BYJU'S Learning Program

CrossIcon