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UPSC Civil Service Exam Questions - Engineering

Q1:

A machine costing Rs. 8, 500 will have a scrap value of Rs. 300. Machines of this class have a working hour average life of 25, 000 hours. What will be the depreciation charge at the end of the first year, if the machine is operated for a total of 1500 hours ? (use straight line method of depreciation)

A Rs. 492.00

B Rs. 542.00

C Rs. 548.50

D Rs. 692.00

ANS:A - Rs. 492.00

DM=Ci-Cs/n.

n=25000/1500,
n=16.67,
DM=8500-300/16.67,
Rs 492.