A company purchased machinery for Rs.10,00,000 on January 1, 2022. The machinery has a useful life of 10 years and a residual value of Rs. 1,00,000. What is the depreciation expense for the year ended December 31, 2022, using the double declining balance method?

The double declining balance method is a type of accelerated depreciation method, which means that the depreciation expense is higher in the earlier years and gradually reduces over time.

To calculate the depreciation expense for the year ended December 31, 2022, using the double declining balance method, we need to follow these steps:

Step 1: Calculate the depreciation rate per year. This is calculated as 1/Useful life x 2, where the useful life is in years and factor 2 represents the double declining balance method.

Depreciation rate = 1/10 x 2 = 0.2 or 20%
Step 2: Calculate the depreciation expense for the year. This is calculated as the book value of the asset at the beginning of the year multiplied by the depreciation rate.

Book value of the asset at the beginning of the year = Cost of asset - Accumulated depreciation
= Rs. 10,00,000 - 0 = Rs. 10,00,000

Depreciation expense for the year = Book value of the asset at the beginning of the year x Depreciation rate
= Rs. 10,00,000 x 20%
= Rs. 2,00,000

Therefore, the depreciation expense for the year ended December 31, 2022, using the double declining balance method is Rs. 2,00,000.