Question

Fixed assets of ₹ 1,00,000 is purchased on dt. 1-07-’15. Accounting year of firm is ended as on 31-03-’16. Calculate depreciation at 12%.

Answer 1

Amount of fixed assets = ₹ 1,00,000; Depreciation rate =12%;
Period for depreciation = From 1-7-T5 to 31-3-’16 = 9 months
Depreciation = 1,00,000 × 12 / 100 × 9 / 12 = ₹ 9,000

Adjustment Entry :