A machine has a useful life of 2 years with a scrap value of Rs. 2500. Based on the above information, complete the depreciation schedule table (under straight line method)
| Year | Annual depreciation (in Rs.) | Book value (in Rs.) |
| 0 | 0 | 30,000 |
| 1 | x | y |
| 2 | x | 2500 |
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → x = Rs. 13,750, y = Rs. 16,250
The book value in year 0 gives the cost of the machine, Rs. 30,000. Under the straight line method the same depreciation is charged every year:
\( \displaystyle x = \frac{\text{Cost} - \text{Scrap value}}{\text{Useful life}} \)
\( \displaystyle x = \frac{30000 - 2500}{2} = \frac{27500}{2} = 13750 \)
The book value at the end of year 1:
\( y = 30000 - 13750 = 16250 \)
Check: \(16250 - 13750 = 2500\), the scrap value at the end of year 2.
CBSE Applied Mathematics (Class XII):
Depreciation
