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A machine costing rupees 2,40,000 is depreciated at 18% per annum on reducing balance method. Find the value of the machine after 6 years. Also find the value of the machine after 6 years. Also find the depreciation amount for the 6th year
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A machine costing rupees 2,40,000 is depreciated at 18% per annum on r...
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A machine costing rupees 2,40,000 is depreciated at 18% per annum on r...
Given, cost of the machine = Rs. 2,40,000
Depreciation rate = 18% per annum
Using reducing balance method, the depreciation for each year will be calculated as follows:
Depreciation for the 1st year = 18% of 2,40,000 = Rs. 43,200
Value of the machine after 1st year = 2,40,000 - 43,200 = Rs. 1,96,800
Depreciation for the 2nd year = 18% of 1,96,800 = Rs. 35,424
Value of the machine after 2nd year = 1,96,800 - 35,424 = Rs. 1,61,376
Depreciation for the 3rd year = 18% of 1,61,376 = Rs. 29,048.64 (approx.)
Value of the machine after 3rd year = 1,61,376 - 29,048.64 = Rs. 1,32,327.36 (approx.)
Depreciation for the 4th year = 18% of 1,32,327.36 = Rs. 23,818.92 (approx.)
Value of the machine after 4th year = 1,32,327.36 - 23,818.92 = Rs. 1,08,508.44 (approx.)
Depreciation for the 5th year = 18% of 1,08,508.44 = Rs. 19,531.32 (approx.)
Value of the machine after 5th year = 1,08,508.44 - 19,531.32 = Rs. 88,977.12 (approx.)
Depreciation for the 6th year = 18% of 88,977.12 = Rs. 16,016.28 (approx.)
Value of the machine after 6th year = 88,977.12 - 16,016.28 = Rs. 72,960.84 (approx.)

Therefore, the value of the machine after 6 years is Rs. 72,960.84 (approx.) and the depreciation amount for the 6th year is Rs. 16,016.28 (approx.).
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A machine costing rupees 2,40,000 is depreciated at 18% per annum on reducing balance method. Find the value of the machine after 6 years. Also find the value of the machine after 6 years. Also find the depreciation amount for the 6th year Related: Properties of Determinants - Matrices and Determinants, Business Mathematics & Statistics?
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A machine costing rupees 2,40,000 is depreciated at 18% per annum on reducing balance method. Find the value of the machine after 6 years. Also find the value of the machine after 6 years. Also find the depreciation amount for the 6th year Related: Properties of Determinants - Matrices and Determinants, Business Mathematics & Statistics? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about A machine costing rupees 2,40,000 is depreciated at 18% per annum on reducing balance method. Find the value of the machine after 6 years. Also find the value of the machine after 6 years. Also find the depreciation amount for the 6th year Related: Properties of Determinants - Matrices and Determinants, Business Mathematics & Statistics? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A machine costing rupees 2,40,000 is depreciated at 18% per annum on reducing balance method. Find the value of the machine after 6 years. Also find the value of the machine after 6 years. Also find the depreciation amount for the 6th year Related: Properties of Determinants - Matrices and Determinants, Business Mathematics & Statistics?.
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