Question
a) A truck is bought for RO 30,000 and depreciation is charged at 10% p.a. by using written down value method, the amount of depreciation
a) A truck is bought for RO 30,000 and depreciation is charged at 10% p.a. by using written down value method, the amount of depreciation at the end of first year RO 3,000 and book value of the truck is RO 27,000. The amount of depreciation at the end of second year RO 2,700 and book value of the truck is RO 24.300 What does the amount book value of truck represent? Does this balance represent the original value of truck at the end of each year? Yes or no, comment on your answer. (Suggested: 80 100 words) b) Truck is bought for RO 40,000 with an estimated useful life of 4 years. The expected scrap vahue at the end of its useful life is RO 2,000. Calculate the WDV Rate (Written Down Value method) and Prepare the Depreciation Schedule for 4 years.
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