TS Grewal Depreciation Solutions of 2022-23

SOLUTIONS/ANSWERS:

Solutions of Question no.1 of Depreciation

			1
Case	Purchase Price of Machinery	Installation Charges	Estimated Scrap Value	Estimated Useful Life (in Years)	Total Cost of Asset	Amount of Annual Depreciation	Rate of Depreciation
	a	b	c	d	e = a+b	f = e - c / d	g = f x 100 / e
a	180000	20000	10000	5	200000	38000	19
b	475000	25000	50000	5	500000	90000	18
c	90000	10000	20000	10	100000	8000	8
d	340000	60000	40000	10	400000	36000	9
e	90000	10000	20000	4	100000	20000	20

Depreciation of Ts Grewal Book Class 11th 2022-23

3

Amount Spend on Purchase of Second-Hand Machinery = 96000 + 24000 = 120000 ₹

Estimated Residual Value = 72000 ₹ 

= 120000 – 72000 = 48000

Annual Depreciation: Total Cost – Resideul Value / No. of Useful life of Machinery

= 120000 – 72000 / 4

Rate of Depreciation = Annual Depreciation x 100 / Total of Cost

=12000*100/120000

THE END ✅