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Depreciation Account - Depreciation

CBSE - STD 11 Commerce - Account (CBSE - English Medium). 121 questions in this chapter.

Question types

Depreciation question types

121 questions across 7 question groups — pick any mix to generate a Account paper with step-by-step answer keys.

121
Questions
7
Question groups
5
Question types
Sample Questions

Depreciation questions

One sample from each question group in this chapter. Select any group above to see the full set with answer keys.

Q 1M.C.Q (1 Marks)1 Mark
A Ltd. purchased a machine on 1.1.2019 for ₹ 1,20,000. Installation expenses were ₹ 30,000. Residual value after 5 years ₹ 5,000. On 1.7.2019, expenses for repair were incurred to the extent of ₹ 2,000. Depreciation is provided @10% p.a. under written down value method. Total depreciation after 2nd year.
  • A
    ₹ 25,000
  • B
    ₹ 13,000
  • C
    ₹ 10,500
  • ✓
    ₹ 28,500

Answer: D.

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Q 2M.C.Q (1 Marks)1 Mark
Ambuja Cement Ltd. purchased a machine on 1-1-2019 for ₹ 1,20,000. Installation expenses were ₹ 10,000. Its residual value after 10 year is ₹ 5,000. On 1-03-2019 expenses on its repairs were incurred to the extent of ₹ 2,000. Depreciation is provided under straight line method. Books are closed on 31st March every year. The amount of depreciation for the current year will be:
  • ✓
    ₹ 3,125
  • B
    ₹ 3,175
  • C
    ₹ 12,500
  • D
    ₹ 12,700

Answer: A.

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Q 3M.C.Q (1 Marks)1 Mark
What will be the percentage of depreciation under SLM in the following case:Original Cost of Machine ₹ 1,50,000
Salvage value after 9 years ₹ 15,000
Repair charges in 2nd year ₹ 10,000
  • A
    11.11%
  • ✓
    10%
  • C
    10.34%
  • D
    9.37%

Answer: B.

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Q 4M.C.Q (1 Marks)1 Mark
Which one of the following is not a feature of written down value rnethod of depreciation?
  • ✓
    The book value of the asset becomes zero at any one point of time.
  • B
    The depreciation is calculated on the book value of assets and not on the cost
  • C
    The amount of depreciation charged on a specific asset reduces every year.
  • D
    There is no need to estimate the residual value and estimated life at the time of deciding the amount of depreciation.

Answer: A.

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Q 5M.C.Q (1 Marks)1 Mark
Depreciation is calculated from the date of ………..
  • A
    Purchase of asset
  • B
    Receipt of asset at business premises
  • ✓
    Asset put to use
  • D
    Asset installed

Answer: C.

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Q 7True False[1 Marks ]1 Mark
Written down value method is followed so that the total burden on Profit and Loss Account in respect of depreciation and repairs put together remains almost equal each year.
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Q 161 Marks Question1 Mark
Name the method of depreciation which assumes that the asset is depreciated more in the earlier years and less in the later years of its life.
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Q 213 Marks Question3 Marks
“In case of a long term asset, repair and maintenance expenses are expected to rise in later years than in earlier year”. Which method is suitable for charging depreciation if the managernent does not want to increase burden on Profit & Loss Account on account of depreciation and repair.
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Q 223 Marks Question3 Marks
A machine was purchased on 1st April, 2013. The balance of this machine on 31st March, 2016 is ₹ 5,83,200. Depreciation is charged @ 10% p.a. on written down value method. What was the cost price of the machine on 1st April, 2013?
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Q 233 Marks Question3 Marks
Original Cost of a Machinery ₹ 5,00,000; Salvage value ₹ 20,000; Expected useful life 10 years. What will be the amount of depreciation for the fourth year according to original cost method? Also specify the rate of depreciation.
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Q 253 Marks Question3 Marks
Original cost of a Machinery ₹ 5,20,000; Salvage Value ₹ 20,000. What will be the amount of depreciation for second year according to diminishing balance method @ 10% p.a.
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Q 274 Marks Question4 Marks
From the following transactions of a concern, prepare Machinery Account for the year ending 31st March, 2013:
2012  
April 1 Purchased a second-hand machinery for ₹ 40,000.
April 1 Spent ₹ 10,000 on repairs for making it serviceable.
Sept. 30 Purchased additional new machinery for ₹ 20,000.
Dec. 31 Repairs and renewals of machinery ₹ 2,000.
2013  
March 31 Depreciate the machinery at 10% p.a.
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Q 284 Marks Question4 Marks
On April 01, 2010 Jain & Sons purchased a second hand plant costing ₹ 2,00,000 and spent ₹ 10,000 on its overhauling. It also spent ₹ 5,000 on transportation and installation of the plant. It was decided to provide for depreciation @ 20% on written down value. The plant was destroyed by fire on Oct. 31, 2013 and an insurance claim of ₹ 50,000 was admitted by the insurance company. Prepare plant account assuming that the company closes its books on March 31, every year.
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Q 294 Marks Question4 Marks
A Company purchased a second-hand machine on 1st April, 2016, for ₹ 30,000 and immediately spent ₹ 4,000 on its repair and ₹ 1,000 on its installation. On Oct. 1, 2018, the machine was sold for ₹ 25,000. Prepare Machine Account after charging depreciation @ 10% p.a. by diminishing balance method, assuming that the books are closed on 31st March every year. IGST was charged @12% on purchase and sale of machine.
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Q 304 Marks Question4 Marks
A Limited purchased a machine on 1st July 2011 for ₹ 3,00,000 and on 1st January 2013 bought another machinery for ₹ 2,00,000. On 1st August 2013 machine bought in 2011 was sold for ₹ 1,60,000. Another machine was bought for ₹ 1,50,000 on 1st October 2013. It was decided to provide depreciation @ 10% p.a. on written down value method assuming books are closed on 31st March each year. Prepare Machinery Account and Provision for depreciation account for 3 years.
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Q 326 Marks Question6 Marks
Ashoka Ltd. bought a machine on 1st April, 2010 for ₹ 2,40,000 and spent ₹ 4,000 on its carriage and ₹ 6,000 towards installation cost. On 1st July, 2011 it purchased a second hand machinery for ₹ 75,000 and spent ₹ 25,000 on its overhauling.On 1st January, 2013 it decided to sell the machinery bought on 1st April, 2010 at a loss of ₹ 20,000. It bought another machine on the same date for ₹ 40,000. Company decided to charge depreciation @ 15% p.a. on written down value method. Prepare machinery account for 3 years. Books are closed each year on 31st March.
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Q 336 Marks Question6 Marks
A plant is purchased for ₹ 60,000 on 1st April, 2009. It is estimated that the residual value of this plant at the end of its working life of 10 years will be ₹ 20,920. Depreciation is to be provided at 10% p.a. on diminishing balance method.
You are required to show the Plant Account for 4 years, assuming that the books are closed on 31st March every year.
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Q 346 Marks Question6 Marks
On 1st April, 2018, following balances appeared in the books of M/s Krishna Traders:
 
₹
Furniture Account
50,000
Provision for Depreciation on Furniture Account
22,000
On 1st October, 2018 a part of Furniture purchased for ₹ 20,000 on 1st April, 2014 was sold for ₹ 5,000. On the same date a new furniture costing ₹ 25,000 was purchased.
The depreciation was provided @ 10% p.a. on original cost of the asset and no depreciation was charged on the asset in the year of sale. Prepare 'Furniture Account' and 'Provision for Depreciation Account' for the year ending 31st March, 2019.
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Q 356 Marks Question6 Marks
On 1st August, 2010, Hindustan Toys Ltd. purchased a plant for ₹ 12,00,000. The firm writes off depreciation at 10% p.a. on the diminishing balance and the books are closed on 31st March each year. On 1st July, 2012, a part of this plant of which the original cost was ₹ 1,80,000 was sold for ₹ 1,00,000 and on the same date a new plant was purchased for ₹ 4,00,000. Show the Plant Account and Provision for Depreciation Account for three years ending 31st March, 2013.
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