On April 1, 2009 a transport company purchased ten truck tyres costing a total amount of 6,00,000
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On April 1, 2009 a transport company purchased ten truck tyres costing a total amount of ₹6,00,000 with an estimated total mileage from each of the tyre of 1,20,000 kilometres with a zero salvage value at the end. However, the company will spend ₹10,000 per tyre on repairs and maintenance after a running of 60,000 kilometres. During the year 2009–10 and 2010–11, each of the tyre was used for a total mileage of 28,000 and 30,000 kilometres, respectively. Show how depreciation and book value of the tyres is to be recognized in the annual accounts.
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