A machine costing Rs. 3,60,000 was purchased on 1 April, 2009. It has estimated scrap value of Rs. 30,000. It is estimated that it will be used for 30,000 hours during its working life. It worked for 10 hours a day for 300 days during the year. The depreciation to be charged for year ending 31 March, 2010 will be

Total depreciation during working life = 3, 60, 000 - 30, 000 = 3, 30, 000 Depreciation per hour = 3, 30, 000/30,000 = Rs.11 Thus, chargeable depreciation = 3000*11 = 33,000 If depreciation per unit is taken as 3, 60, 000/60,000 = Rs. 12, then depreciation 3000*12 = 36, 000 Rs.30, 000 is the depreciation @ Rs.10 while Rs. 3, 30, 000 is the depreciation of full life.