Question

Original cost= Rs 126000, Salvage value= Rs 6000, Dep for 2nd year under 10% WDV Method is ___

• A. Rs 10,800
• B. Rs 11,340
• C. Rs 15,000
• D. Rs 14,000

Answer 1

The correct option is A

Rs 10,800

Depreciation = Opening Book value * rate of depreciation

Year Opening Book value Depreciation Closing Book value 1 120000 12000 108000 2 108000 10800 97200