Question

Original Cost = Rs. 1,00,000.
Salvage Value = Rs. 5,000.
Calculate Depreciation for 2^nd year @10% p.a under WDV method ?

• A. Rs. 8,550
• B. Rs. 9,450
• C. Rs. 8,500
• D. Rs. 9,000

Answer 1

The correct option is D Rs. 9,000

Depreciation for 1st year
= Rs. 1,00,000 x 10% = Rs. 10,000

WDV for 1st year
= Rs. 1,00,000 - Rs. 10,000 = Rs. 90,000

Depreciation for 2nd year
= Rs. 90,000 x 10% = Rs. 9,000