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)
|
Year |
Annual depreciation, (in ₹) |
Book Value (in ₹) |
|
0 |
0 |
30,000 |
|
1 |
x |
y |
|
2 |
x |
2500 |
Answer & explanation
Correct answer: option 4
$\text {Amount of depreciation (x)} = \frac{\text{Cost of Machine - Scrap Value of Machine}}{|Life in years} = \frac{30000-2500}{2} = 13,750$
$ y = 30,000 - 13,750 = 16,250$