Question

Calculate ‘Depreciation on Capital Asset’ from the following data

| S.no | Particulars | Amount (in ₹crores) |
| (i) | Capital value of the asset | 1,000 |
| (ii) | Estimated life of the asset | 20 years |
| (iii) | Scrap Value | Nil |

Answer 1

Depreciation on capital asset = cost of the capital asset - Scrap Value/Estimated life of the capital asset

Depreciation = 1000 - 0/20

Depreciation = Rs. 50 cores