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Following information is extracted from the books of Arfan Ltdas on December 31

ID: 2444920 • Letter: F

Question

Following information is extracted from the books of Arfan Ltdas on December 31st, 2007.

Particulars

Cost

Depreciation

rate

Accumulated Depreciation

On 01-01-2007

Vehicles 01-01-2007

1,90,000

10%

10,000

Building 01-01-2007

4,00,000

20%

12,500

Furniture & Fixture 01-01-2007

4,15,000

15%

34,500

Land 01-01-2007

1,58,000

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You are required to calculate Written down value of eachasset and show working of complete depreciation for the year endingon December 2007.

Particulars

Cost

Depreciation

rate

Accumulated Depreciation

On 01-01-2007

Vehicles 01-01-2007

1,90,000

10%

10,000

Building 01-01-2007

4,00,000

20%

12,500

Furniture & Fixture 01-01-2007

4,15,000

15%

34,500

Land 01-01-2007

1,58,000

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Explanation / Answer

Cost

Accumulated

Depreciation

Written Down Value

Depreciation

Expense ( C ) =

( A ) - ( B ) - ( C )

( A )

( B )

{( A ) - ( B )} x

Depreciation Rate

323,425.00

Cost

Accumulated

Depreciation

Written Down Value

Depreciation

Expense ( C ) =

( A ) - ( B ) - ( C )

( A )

( B )

{( A ) - ( B )} x

Depreciation Rate

190,000.00 10,000.00 18,000.00 162,000.00 400,000.00 12,500.00 77,500.00 310,000.00 415,000.00 34,500.00 57,075.00

323,425.00

158,000.00 158,000.00