Rate of depreciation under written down value method is 15% p.a. Cost of the machinery is Rs. 10,00,000. Residual value at the end of useful life is Rs. 20,000. Depreciation for the first year will be:
A
Rs. 1,50,000
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B
Rs. 1,20,000
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C
Rs. 1,00,000
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D
Rs. 80,000
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Solution
The correct option is A Rs. 1,50,000
Depreciation for the 1st year = Depreciable value x rate of depreciation