An asset is purchased for Rs. 50,000. The rate of depreciation is 15% p.a. Calculate the annual depreciation for the first two years under diminishing balance method.

A furniture costing Rs 5,000 was purchased on 1.1.2016, the installation charges being Rs 1,000. The furniture is to be depreciated @10% p.a. on the diminishing balance method. Pass journal entries for the first two years.

On 1.1.2017 a firm purchased a machine at a cost of Rs.1,00,000. Its life was estimated to be 10 years with a scrap value of Rs.10,000. Compute the amount of depreciation to be charged at the end of each year.

From the following information, calculate the amount of depreciation and rate of depreciation under straight line method.
Purchase price of machine Rs.2,00,000
Expenses to be capitalised Rs.50,000
Estimated residual value Rs.15,000
Expected useful life 5 years

Calculate the amount of depreciation and depreciation rate from the following by using ‘straight line method’. Also give journal entries for the first two years. The books are closed on 31st December every year.

January 1, 2016 Payment to vendor for purchase of machinery	Rs.2,00,000
January 1, 2016 Transportation cost	Rs.2,000
January 1, 2016 Installation cost	Rs.18,000
Estimated scrap value at the end of the life	Rs.10,000
Estimated life	10 years