![]() Which of the following method should be used by Arya Ltd. The accounts are closed on 31st December every year. At the time of purchase, it was estimated that the effective commercial life of the machine will be 12 years after which its salvage value will be ₹ 12,000. The machinery is such that the possibility of obsolescence is low and do not require much repair expenses with passage of time. On 1st July, 2021, Arya Ltd purchased a machine for ₹ 1,08,000 and spent ₹ 12,000 on its installation. Read the following case study and answer questionsĪrya Ltd. Case Study Questions Chapter 7 Depreciation Provisions and Reserves Please practise these case study based Class 11 Accountancy Questions and answers to get more marks in examinations. ![]() These case based questions are expected to come in your exams this year. We have provided Case Study Questions for Class 11 Accountancy for all chapters as per CBSE, NCERT and KVS examination guidelines. The depreciation expense per year for this equipment would be as follows: Depreciation Expense (25,000 0) / 8 3,125 per year. Consider a piece of equipment that costs 25,000 with an estimated useful life of 8 years and a 0 salvage value. Please refer to the Chapter 7 Depreciation Provisions and Reserves Case Study Questions with answers provided below. Depreciation Expense (Cost Salvage value) / Useful life.
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