Practicing Success
A machine has useful life of 2 years with scrap value of ₹ 2500. Based on the above information, complete the depreciation schedule table (under straight line method)
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x = ₹2500, y = ₹27,500 x = ₹13,750, y = ₹3000 x = ₹16,250, y = ₹13,750 x = ₹13,750, y = ₹16,250 |
x = ₹13,750, y = ₹16,250 |
$\text {Amount of depreciation (x)} = \frac{\text{Cost of Machine - Scrap Value of Machine}}{|Life in years} = \frac{30000-2500}{2} = 13,750$ $ y = 30,000 - 13,750 = 16,250$
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