Question

Original cost = Rs.1,26,000. Salvage value = Rs.6,000. Under WDV method, the value of depreciation for 2nd year will be taking 10% as rate.

• 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
Closing book value = Opening Book value - Depreciation

Year Opening Book value Depreciation Closing Book value 1 1,20,000 12,000 1,08,000 2 1,08,000 10,800 97,200