Under the Written Down Value (WDV) method, if the rate of depreciation is 10% and the original cost is ₹10,000, what is the depreciation for the second year? MCQ with Answer and Explanation
Under the Written Down Value (WDV) method, if the rate of depreciation is 10% and the original cost is ₹10,000, what is the depreciation for the second year?
A. ₹8,100
B. ₹1,000
C. ₹9,000
D. ₹900
Answer: Option D
Solution (By JKSSB Mock Tests)
Year 1 depreciation is 10% of ₹10,000 = ₹1,000. The WDV at the start of Year 2 is ₹9,000. Year 2 depreciation is 10% of ₹9,000 = ₹900.
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