Question

In case the total cost of a machine, less installation charges, is greater than Rs 2,00,000, then 20% depreciation is charged, and if the total cost of the machine is less than Rs 2,00,000, then 10% depreciation is charged.
Write the steps to create an 'IF' function using the Formula tab and dialogue box on a given spreadsheet. Also, write the syntax of the result.

Hint:

The \texttt{IF} function allows conditional calculations: \texttt{IF(condition, value\_if\_true, value\_if\_false)}.
\begin{itemize} \item Use \texttt{num\_digits > 0}: Rounds right of decimal (decimal places). \item Use \texttt{num\_digits = 0}: Rounds to nearest whole number. \item Use \texttt{num\_digits t; 0}: Rounds left of decimal (nearest 10, 100, etc.). \end{itemize} Excel also has \texttt{ROUNDUP} (always rounds away from zero) and \texttt{ROUNDDOWN} (always rounds towards zero).

Answer 1

To solve the problem, we need to write the steps to create an 'IF' function in Excel using the Formula tab and dialog box to apply depreciation rules based on the cost of the machine (excluding installation charges).

1. Understanding the Condition:
We are given:

• If the machine cost (excluding installation) is greater than Rs 2,00,000, apply 20% depreciation.
• If it is less than or equal to Rs 2,00,000, apply 10% depreciation.

2. Steps to Create an IF Function Using the Formula Tab and Dialog Box:

1. Select the cell where you want the depreciation amount to appear.
2. Go to the Formula tab on the Ribbon.
3. Click on Insert Function (fx) near the formula bar.
4. In the dialog box, type IF in the search box and press Go.
5. Select the IF function from the list and click OK.
6. Fill in the function arguments:
   • Logical_test: =A2>200000 (Assuming A2 contains the cost excluding installation)
   • Value_if_true: A2*20%
   • Value_if_false: A2*10%
7. Click OK to apply the function.

3. Syntax of the IF Function:
=IF(A2>200000, A2*20%, A2*10%)
Here, A2 is assumed to be the cell containing the cost of the machine (excluding installation charges).

Final Answer:
The IF function is created using the Formula tab and dialog box, and the correct syntax is:
=IF(A2>200000, A2*20%, A2*10%)