On 1st Apirl, 2016, a firm purchased a machinery for ₹ 1,05,000. The scrap value was estimated to be ₹ 5,000 at the end of asset’s 10 year’s life.
Solution:- i) The depreciation expenses in the first year = (₹ 10,5000 – 5000)/10 = ₹ 10,000 ii) The net book value of the asset on 31st March 2021 = ₹ 1,05,000 – 10,000 ✕ 5 = ₹ 55,000 iii)…