The correct answer is A. Rs. 10,800.
The written down value (WDV) method is a depreciation method that calculates depreciation based on the asset’s original cost, its scrap value, and its estimated useful life. The formula for calculating depreciation using the WDV method is:
Depreciation = (Original cost – Scrap value) / Estimated useful life
In this case, the original cost of the machine is Rs. 1,26,000, the scrap value is Rs. 6000, and the estimated useful life is 10 years. Therefore, the depreciation for the first year is:
Depreciation = (126000 – 6000) / 10 = 12000
The depreciation for the second year is:
Depreciation = (126000 – 6000 – 12000) / 9 = 10800
Therefore, the amount of depreciation for the second year by using WDV method is Rs. 10,800.
Option B is incorrect because it is the depreciation for the first year. Option C is incorrect because it is the scrap value of the machine. Option D is incorrect because it is the depreciation for the first year plus the scrap value of the machine.