An asset costs ₹80,000, has a useful life of 7 years and is depreciated by ₹10,000 a year by the linear method. What is its residual value?

Explanation

1. 01

   Total depreciation over the life: $7 \times 10{,}000 = 70{,}000$.

2. 02

   Residual value $= 80{,}000 - 70{,}000 = 10{,}000$ rupees.