Question

Original cost = Rs. 80,000, Life = 10 Years, Estimated salvage Value = 4,000.
As per SLM method rate of depreciation p.a. = ____________.

• A. 10.55%
• B. 9.50%
• C. 10%
• D. 9.80%

Answer 1

The correct option is B 9.50%

Annual Depreciation
= (Rs. 80,000 - Rs. 4,000) / 10
= Rs. 7,600

Rate of depreciation
= (Rs. 7,600\Rs. 80,000) x 100
= Rs. 9.50%