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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Get complete step-by-step solutions for T.S. Grewal Double Entry Book Keeping Class 11 - 2025-2026 - Chapter 15 - Depreciation. Study double-entry system details, practice timed problems, and verify answers directly.
Tushar purchased a machine for ₹90,000. Expenses incurred on its cartage and installation are ₹10,000. The residual value at the end of its expected useful life of 10 years is estimated at ₹20,000. Calculate the amount of depreciation by Straight Line Method for the first year ending 31st March, 2025, if the machine is purchased on: (a) 1st April, 2024; (b) 1st July, 2024; (c) 1st October, 2024; (d) 1st January, 2025.
Cost of machine = ₹90,000 + ₹10,000 = ₹1,00,000
Depreciable amount = Cost − Residual value = ₹1,00,000 − ₹20,000 = ₹80,000
Annual depreciation = ₹80,000 ÷ 10 years = ₹8,000
| Date of purchase | Period used in the year | Depreciation (₹) |
|---|---|---|
| (a) 1st April, 2024 | 12 months | 8,000 |
| (b) 1st July, 2024 | 9 months | 6,000 |
| (c) 1st October, 2024 | 6 months | 4,000 |
| (d) 1st January, 2025 | 3 months | 2,000 |
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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.