alleryMachine cost ₹10,00,000, residual ₹1,00,000, life 10 years. SLM depreciation per year:
A₹1,00,000 per annum
B₹90,000 per annum
C₹95,000 per annum
D₹85,000 per annum
Answer & Solution
Correct answer: B. ₹90,000 per annum
1. SLM dep = (Cost − Residual) ÷ Useful life.
2. = (10,00,000 − 1,00,000) ÷ 10.
3. = 9,00,000 ÷ 10 = ₹90,000 per year.
_Source: ICAI BoS Foundation Paper 1, Ch 5 "Depreciation & Amortisation", §3.1 formula_
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