Answer to Question #99608 in Accounting for trushang

Question #99608
Sub:Financial Accounting and analysis

Question: . Wildcat Ltd, a manufacturing company sold a machinery for Rs 8 lacs at the year end.
The company had purchased the machinery four years back for Rs 15 lacs and had
depreciated the same using written down value method of depreciation @ 20%.
As an accounts executive of Wildcat Ltd, calculate the WDV of the asset for the four
years, accumulated depreciation for four years and profit/loss on sale, if any.
1
Expert's answer
2019-12-02T09:26:37-0500

The WDV of the asset for the four years is:

Rate of depreciation = 1 - (8/15)^(1/4) = 0.145.

Accumulated depreciation for four years was: 15×0.2×4 = 12.

Profit on sale is 12 - 8 = 4.


Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!

Leave a comment

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS