The original cost of the asset is Rs.2,50,000. The freight and installation charges amounted to Rs.25,000. The useful life of the assets 10 years and net residual value is estimated to be Rs. 50,000. Calculate the amount of depreciation to be charged every year under straight-line method for the year ended 31st December 2016, in each of the following conditions. (i) When the asset has been purchased on 1st January 2016. (ii) When the asset has been purchased on 1st Aril, 2016.

The original cost of the asset is Rs.2,50,000. The freight and install

1.	The original cost of the asset is Rs.2,50,000. The freight and installation charges amounted to Rs.25,000. The useful life of the assets 10 years and net residual value is estimated to be Rs. 50,000. Calculate the amount of depreciation to be charged every year under straight-line method for the year ended 31st December 2016, in each of the following conditions. (i) When the asset has been purchased on 1st January 2016. (ii) When the asset has been purchased on 1st Aril, 2016.
Answer» The original cost of the asset is Rs.2,50,000. The freight and installation charges amounted to Rs.25,000. The useful life of the assets 10 years and net residual value is estimated to be Rs. 50,000. Calculate the amount of depreciation to be charged every year under straight-line method for the year ended 31st December 2016, in each of the following conditions. (i) When the asset has been purchased on 1st January 2016. (ii) When the asset has been purchased on 1st Aril, 2016.