+2 votes
in Class 11 by kratos

On July 01.2001 Ashwani purchased a machine for Rs. 2,00,000 on credit. Installation expenses Rs. 25,000 are paid by cheque. The estimated life is 5 years and its scrap value after 5 years will be Rs. 20,000. Depreciation is to be charged on straight line basis. Show the journal entry for the year 2001.

1 Answer

+4 votes
by kratos
 
Best answer

Depreciation = Cost of Assets - Scrap value/Estimated Life of Asset

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