PRC-1 · Chapter 6 · Question 70 of 100
Jupiter Ltd purchased a machine on 1 July 2017 for Rs. 500k. Straight-line life 10 years, RV 20k. On 1 January 2018, they fitted a safety guard for Rs. 25k (life 5 years, nil RV). What is the total combined depreciation charge for the financial year ended 30 June 2018?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Rs. 50,500
Explanation
Machine: (500k - 20k)/10 = 48k for the full year. Safety guard: 25k/5 = 5k per year, but fitted 1 Jan to 30 June (6 months) = 2.5k. Total = 48k + 2.5k = Rs. 50,500.
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