Name Nabeel Akhtar

Reg. No GU-0758

Subject Fundamentals of Accounting

Section BS-IT(A-Evening)

Submitted To Mam. Komal

 Straight line method

Q.1:
Solution:
cost of an Assets – Residual Value
𝐷𝑒𝑝𝑟𝑒𝑐𝑖𝑎𝑡𝑖𝑜𝑛 =
𝐸𝑠𝑡𝑖𝑚𝑎𝑡𝑒𝑑 𝑙𝑖𝑓𝑒
40,000 – 8,000
𝐷𝑒𝑝𝑟𝑒𝑐𝑖𝑎𝑡𝑖𝑜𝑛 =
5
𝐷𝑒𝑝𝑟𝑒𝑐𝑖𝑎𝑡𝑖𝑜𝑛 = 6400
Schedule of Depreciation
Years Cost Depreciation Accumulated Book value
Expense depreciation
1 4,000 6400 6400 33600
2 4,000 6400 12800 27200
3 4,000 6400 19200 20800
4 4,000 6400 25600 14400
5 4,000 6400 32000 8000
Q.2:
Solution:
cost of an Assets – Residual Value
𝐷𝑒𝑝𝑟𝑒𝑐𝑖𝑎𝑡𝑖𝑜𝑛 =
𝐸𝑠𝑡𝑖𝑚𝑎𝑡𝑒𝑑 𝑙𝑖𝑓𝑒
80,000 – 10,000
𝐷𝑒𝑝𝑟𝑒𝑐𝑖𝑎𝑡𝑖𝑜𝑛 =
10
𝐷𝑒𝑝𝑟𝑒𝑐𝑖𝑎𝑡𝑖𝑜𝑛 = 7000
Schedule of Depreciation
Years Cost Depreciation Accumulated Book value
Expense depreciation
1 80,000 7,000 7,000 73,000
2 80,000 7,000 14,000 66,000
3 80,000 7,000 21,000 59,000
4 80,000 7,000 28,000 52,000
5 80,000 7,000 35,000 45,000
6 80,000 7,000 42,000 38,000
7 80,000 7,000 49,000 31,000
8 80,000 7,000 56,000 24,000
9 80,000 7,000 63,000 17,000
10 80,000 7,000 70,000 10,000
 Straight line method
Q.3:
Solution:
cost of an Assets – Residual Value
𝐷𝑒𝑝𝑟𝑒𝑐𝑖𝑎𝑡𝑖𝑜𝑛 =
𝐸𝑠𝑡𝑖𝑚𝑎𝑡𝑒𝑑 𝑙𝑖𝑓𝑒
1,50,000 – 15,000
𝐷𝑒𝑝𝑟𝑒𝑐𝑖𝑎𝑡𝑖𝑜𝑛 =
8
𝐷𝑒𝑝𝑟𝑒𝑐𝑖𝑎𝑡𝑖𝑜𝑛 = 16875
Schedule of Depreciation
Years Cost Depreciation Accumulated Book value
Expense depreciation
1 1,50,000 16875 16875 133125
2 1,50,000 16875 33750 116250
3 1,50,000 16875 50625 99375
4 1,50,000 16875 67500 82500
5 1,50,000 16875 84375 65625
6 1,50,000 16875 101250 48750
7 1,50,000 16875 118125 31875
8 1,50,000 16875 135000 15000
Q.15(A):
Solution:
cost of an Assets – Residual Value
𝐷𝑒𝑝𝑟𝑒𝑐𝑖𝑎𝑡𝑖𝑜𝑛 =
𝐸𝑠𝑡𝑖𝑚𝑎𝑡𝑒𝑑 𝑙𝑖𝑓𝑒
50,000 – 5,000
𝐷𝑒𝑝𝑟𝑒𝑐𝑖𝑎𝑡𝑖𝑜𝑛 =
5
𝐷𝑒𝑝𝑟𝑒𝑐𝑖𝑎𝑡𝑖𝑜𝑛 = 9000

Years Cost Depreciation Accumulated Book value

Expense depreciation
1 50000 9000 9000 41000
2 50000 9000 18000 32000
3 50000 9000 27000 23000
4 50000 9000 36000 14000
5 50000 9000 45000 5000