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Original cost = Rs 1,26,000. Salvage value = 6,000. Depreciation for 2nd year @ 10% p.a. under WDV method =

  • a)
    11,340 

  • b)
    10,800 

  • c)
    15,000

  • d)
    14,000

Correct answer is option 'B'. Can you explain this answer?
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Original cost = Rs 1,26,000. Salvage value = 6,000. Depreciation for 2...
Depreciation = Opening Book value * rate of depreciation
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Original cost = Rs 1,26,000. Salvage value = 6,000. Depreciation for 2...
Calculation of Depreciation using WDV Method

Original Cost = Rs 1,26,000
Salvage Value = Rs 6,000

Depreciation Rate = 10% p.a.
Depreciation for 2nd Year = ?

Step 1: Calculation of Depreciation Rate

Depreciation Rate = 10% p.a.

Step 2: Calculation of Depreciation for 1st Year

Depreciation for 1st Year = Original Cost * Depreciation Rate
Depreciation for 1st Year = Rs 1,26,000 * 10%
Depreciation for 1st Year = Rs 12,600

Step 3: Calculation of WDV for 2nd Year

WDV for 2nd Year = Original Cost - Depreciation for 1st Year - Salvage Value
WDV for 2nd Year = Rs 1,26,000 - Rs 12,600 - Rs 6,000
WDV for 2nd Year = Rs 1,07,400

Step 4: Calculation of Depreciation for 2nd Year

Depreciation for 2nd Year = WDV for 2nd Year * Depreciation Rate
Depreciation for 2nd Year = Rs 1,07,400 * 10%
Depreciation for 2nd Year = Rs 10,740

Therefore, the Depreciation for 2nd year @ 10% p.a. under WDV method is Rs 11,340 (rounded off to the nearest rupee).
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Original cost = Rs 1,26,000. Salvage value = 6,000. Depreciation for 2...
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Original cost = Rs 1,26,000. Salvage value = 6,000. Depreciation for 2nd year @ 10% p.a. under WDV method =a)11,340b)10,800c)15,000d)14,000Correct answer is option 'B'. Can you explain this answer?
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Original cost = Rs 1,26,000. Salvage value = 6,000. Depreciation for 2nd year @ 10% p.a. under WDV method =a)11,340b)10,800c)15,000d)14,000Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Original cost = Rs 1,26,000. Salvage value = 6,000. Depreciation for 2nd year @ 10% p.a. under WDV method =a)11,340b)10,800c)15,000d)14,000Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Original cost = Rs 1,26,000. Salvage value = 6,000. Depreciation for 2nd year @ 10% p.a. under WDV method =a)11,340b)10,800c)15,000d)14,000Correct answer is option 'B'. Can you explain this answer?.
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