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Question 1 Chapter 11 – Unimax Publications of Class 11
Straight Line Method
A company purchases a plant for ₹ 20,000. The useful life of the plant of the plant is 8 years and the estimated residual value after 8 years id ₹ 4,000. Determine the rate of depreciation if management wants to depreciate it by straight line method.
The solution of Question 1 Chapter 11 – Unimax Publications of Class 11
| Total Value | – | Residual Value | x 100 |
| Useful Life | |||
| 20,000 | – | 4,000 | x 100 |
| 8 | |||
= 20%
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