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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
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Question 1 Chapter 11 – Unimax Publications of Class 11
Straight Line Method
A company purchases a plant for ₹ 20,000. The useful life of the plant of the plant is 8 years and the estimated residual value after 8 years id ₹ 4,000. Determine the rate of depreciation if management wants to depreciate it by straight line method.
Amount of Depreciation = (Total Value − Residual Value) ÷ Useful Life
= (₹ 20,000 − ₹ 4,000) ÷ 8
= ₹ 16,000 ÷ 8
= ₹ 2,000
Rate of Depreciation = (Annual Depreciation ÷ Original Cost) × 100
= (₹ 2,000 ÷ ₹ 20,000) × 100
= 10%
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "Question 1 Chapter 11 – Unimax Publications of Class 11", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Unimax Accountancy Class 11 - 2023.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
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