Question

Megha Associates purchased a new Machinery on 1/1/2010 for Rs. 8000 and spent Rs. 2000 for its installation. The expected salvage value is Rs. 2000 at the end of its useful life of 10 years. Calculate the amount of depreciation under straight line method.

Answer 1

Procedure: 

Step 1 – Open a new blank worksheet in Libre Offfice Calc. 

Step 2 – Enter the following details as follows

	A	B
1	Name of Asset	Machinery
2	Cost of machinery	18000
3	Cost of installation	2000
4	total cost to use	= B2+B3
5	Salvage value	2000
6	Useful life (years)	10
7	Deprecation	= SLN (B4,B5,B6)

Output:

Depreciation

1800