home > Sample Assignment > Accounting Homework Assignment > Calculate Depreciation Expense

Calculate Depreciation Expense Sample Assignment

    Q. An asset was purchased for Rs. 10,500 on 1 April 1991. The scrap value was estimated to be Rs. 500 at the end of asset’s ten year’s life. S.L.M. was used . The accounting year ends on 31 March. The asset was sold for Rs. 600 on March 1998. Calculate the following : (i) The depreciation expense in he first year 1991. (ii) The net book value of the asset on 31 March 1996. (iii) The gain loss o sale of the asset on 31March 1998.

Solution:                      

Original cost                                                                             Rs.
Less: Scrap value                                                                 10,500
                                                                                                    500    
                                                                                                10,000                                                  
Annual depreciation Rs. 10,000/10                                   1,000
(i)Depreciation expense in 1991                                        1,000
(ii)Cost of the asset                                                             10,500
     Depreciation up to 31-3-1996 (1,000 x 5)                    5,000
                                                                                                  5,500
(iii)Cost of the asset                                                            10,500
       Depreciation up to 31-3-1998 (1,000 x 7)                  7,000
Less: Sale price                                                                    3,500
Loss on sale                                                                            6,00
                                                                                                 2,900

Other Sample Assignments in Accounting Homework Assignment :

Calculate Cost of Land and Building	Calculate Depreciation
Calculate Depreciation By Equal	Calculate Depreciation Diminishing Balance
Calculate Depreciation Expense	Inventory Valuation
Calculate Cost Of Sale	Calculate Inventory And Profit
Fifo Lifo	Financial Statements profit and loss
Financal Statements

---

---