An asset cost Rs. 7,20,000/- has residual value of Rs. 90,000/-, and is expected to last 9 years. Ca

An asset cost Rs. 7,20,000/- has residual value of Rs. 90,000/-, and is expected to last 9 years. Calculate the total depreciation till 6th year using Straight-line Method. a. Rs. 70,000 b. Rs. 80,000 c. Rs. 4,20,000 d. Rs. 4,80,000

 

Let me Explain :Expected Life = 9 YearsTotal Depreciation = Cost of the Asset - Residual ValueSo, Value to be taken for Depreciation = 720000 - 90000 = 630000Depreciation per year = 630000/9 = 70000So, Total Depreciation till 6th year also will be Rs. 70000 * 6 = Rs. 4,20,000/-

 

but sir i posted one pic of this type of question.. may be answer of that is wrong

 

Thank you sir...sir and give the rgt answers for other case studies also please sir..i know the concept but some case studies i cant get idea to solve tat.plz sir..

 

Thank you sir...sir and give the rgt answers for other case studies also please sir..i know the concept but some case studies i cant get idea to solve tat.plz sir..