Q no 1. A bis is purchased by zee Company for Rs. 1.65 Million for...
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Q no 1. A bis is purchased by zee Company for Rs. 1.65 Million for business purpose on June 15, 2014. The car is estimated to be used in business for next 5 years. The company's Financial year starts from 1st April every year. The company estimated that if the same car was purchased 5 years ago and used as the new car will be used, then that car can be sold for Rs. 0.15 Million today. Calculate the annual depreciation expense (prepare proper table) till the end of useful life of car by using each of the bellow mentioned depreciation method. 1. 200% declining-balance using half year convention. (04) 2. Sum of year's-digits method for fractional year rounded to the nearest whole month. (06) 3. If above mentioned car has an estimated life of 2.3 Million KM of travel, calculate the depreciation rate per KM of travel. (02) 4. Pass the journal entry if this car is disposed off at Rs.0.2 Million after its useful life. (03)
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