A.O.A!
kindly check solution of this question (CE-2016 A&A paper I Q NO 4(A))

HERE IS SOLUTION

(a)schedule
Working
To find depreciation rate
Cost (c) =85000
Residual value (s) =10000
Useful life (n) =4years
Rate of depreciation (r) =?
Formula:
Annual depreciation=cost- salvage value =85000-10000 =18750
Estimated life 4

Depreciation rate =annual depreciation×100=18750×100= 25%
Depreciable value 75000

(Depreciable value=cost- salvage value=85000-10000=75000)

As double declining balance depreciation method so
Depreciation Rate = Accelerator × Straight Line Rate
=2 × 25%
=50%

Calculation of depreciation
Depreciation = Depreciation Rate × Book Value of Asset

year Net book value, Double-declining balance Acc dep NBV,
beginning of year depreciation computed end of year
as 2 × SL rate
× beginning NBV

1 85,000 42,500 42,500 42,500
2 42,500 21,250 63,750 21,250
3 21,250 10,625 74,375 10,625
4 10,625 625 625 10,000
salvage value
Total 75,000 75,000




(b) Balance sheet at 31 Dec 2015
Hydri construction co.
Balance sheet
As on 31st December 2015

Liabilities Rs. Assets Rs.

Fixed Assets:

Excavator: 85000
-depreciation 42500 42500