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G1101 Pages: 3

PART C
Answer any two full questions, each carries 15 marks.
Explain valuation and its purpose? (5)
What are the methods for calculating depreciation? (10)
Discuss about different methods for finding valuation of a building (8)

The cost of construction of a new building according to present market rate 15 (7)
Rs. 80,000/- having a life of 70 years. But if the building is 15 years old
determine the depreciation amount which should be deducted from the cost of

the new building at 6% compound interest.

A building is constructed at a cost of Rs.2,50,000 on a land purchased at Rs. (9)
50,000. The owner of the property expects a return of 9% on the cost of
construction and 8% on the cost of land. The building is estimated to have a
future life of 60years at the end of which it requires Rs.3,25,000 for constructing

a new building in its place. Determine the standard rent of the property given:

1; Rate of interest for sinking fund at 6%
11. Annual repairs at 1.5% of cost of the construction
ili. All other outgoings 28% of the net income of the property

Scrap value at the end of the useful life of the building as 10%.

Define salvage value, Scrap value, capitalised value and obsolescence (6)

بد ‎मैप‏ بد ہد

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