Sample QuestionsP2 C2 Depreciation Accounts questions
One sample from each question group in this chapter. Select any group above to see the full set with answer keys.
Which of the following expense is not paid in cash ?
Answer: D.
View full solution →To which of the following depreciation is applicable ?
Answer: A.
View full solution →Under which method of depreciation, balance is maintained between depreciation amountand repairing expense ?
Answer: C.
View full solution →Under which method of depreciation, value of asset never becomes zero?
Answer: A.
View full solution → Which of the following asset is not depreciable ?
Answer: D.
View full solution →Where and how depreciation is disclosed in the balance sheet ?
Which account is credited to record depreciation under depreciation provision method?
Describe different methods to record depreciation on asset from the view point of accounting.
Write the formula to determine the depreciation rate under equal instalment method.
Write journal entry to transfer depreciation to profit and loss account at the end of theyear.
There was an opening balance of machine account on $1-4-15$ in the book of Shruti Limited $₹ 1,05,000$. This machine was purchased four years back. Under straight line method, $10 \%$ depreciation is charged on this machine. From this information ascertain the amount of annual depreciation.
View full solution →There is balance in machine account of $₹ 65,000$ in the books of Kashvi Enterprise on $1-4-2015$. This machine was purchased five year back. On this machine depreciation was computed as per straight line method, and total written off depreciation is $₹ 55,000.$
View full solution →Explain, different methods for recording of depreciation in books of accounts.
Sarvesh limited has purchased machine on $1-4-13$. By charging depreciation at $10%$ under reducing balance method, $33,240$ is recorded as depreciation on $31-3-15,$ determinethe cost price of machine.
View full solution →Hiral limited charges depreciation on its assets at $5%$ under equal installment method. If annual depreciation amount is $Rs.6,000$, determine cost price of machines.
View full solution →Shrcy Limited has purchased a machine on $1—4—14$ for $₹ 1,20,000$. Its installation expense is $₹ 30,000$. If depreciation is charged at $15 \%$ under straight line instalment method, disclose the effect in annual accounts of first year.
View full solution →Give difference between : Equal instalment method and Reducing balance method.
Write short-note on : $(A)$ Reducing Balance Method :
View full solution →Write short-note on : $(A)$ Equal Instalment Method
View full solution →What are depreciable assets ? Give its explanation and list out depreciable assets.
In the books of Joseph Limited, balance of machine account was $₹ 1,10,000$ on $1-4-14$. Every year company charges depreciation at $5 \%$ on reducing balance method. On $30-9-14$ this machine is sold at a loss of $30 \%$ on book value. From the above information pass necessary journal entries and prepare machine account in the books of company.
View full solution →Surbhi & Co. purchased a machine at a cost of $₹ 57,000$. Installation cost to it was $₹ 3000$. Compute depreciation at $5 \%$ under reducing balance method for first three years. Cost price $= 57,000 + 3000 = ₹ 60,000$
View full solution →On $1-4-14$ in the books of Vijay & Company, balance of machine account was of $3 87,480$. This machine was purchased $3$ years back. Depreciation on machine is charged at $10 \%$ every year under reducing balance method. Ascertain the cost price of machine and annual amount of depreciation as on $31-3-15.$
View full solution →Yug & Co. had purchased one machine for $₹ 1,10,000$ on $1-4-12.$ Installation cost of this machine was $₹ 6000$ and carriage expense was if $4000.$ Company provides $8 \%$ depreciation under straight line method. On $31-3-15$ this machine was sold at a loss of $20 \%$ of book value. Prepare journal entries and machine account for three years.
View full solution →Akshara Limited has purchased a machine for $₹ 70,000$ on $01-4-2013. 10 \%$ depreciation is to be charged as per straight line method on this machine. Pass journal entries for first two years ofdepreciation in the books of company and disclose effect in annual accounts. Ans. : Herc, amount of depreciation will be $₹ 7000$. Since straight line method of depreciation is applied, the amount of depreciation would remain identical and its accounting treatments will be as follows :
View full solution →On $1-4-14$ in the books of Riya Industries balance of machine account was on $₹ 24,000.$ This machine was purchased six years back. Every year, company charges depreciation at $10 \%$ under straight line method. On $30-9-14$ this was sold at $30 \%$ loss of book value. From the above information pass journal entries in the books of company and prepare machine account.
View full solution →Yusuf Dodawala Corporation has purchased machine for $₹ 70,000$ on $1—4—12$. On $1-10-12$ purchased second machine for ”f $40,000$. On $31—1-15$, second machine sold at $20 \%$ profit of book value. Company provides depreciation at $10 \%$ every year under reducing balance method. Prepare machine account, from above information and show accounting effect in annual account of first year.
View full solution →Kirtan Enterprise had balance of $₹ 80,000$ in the account of furniture and fixtures on $1-4-2012.$ As per requirement of institute old furniture was purchased for $₹ 47,000$ on $1-7-13$, for which installation and other necessary expenses were incurred of $₹ 13,000. $ Furniture which was purchased on $1-7-13$ was not found suitable and sold for $₹ 35,000$ on $31-3-15$. Every year $10 \%$ depreciation is charged on asset under reducing balance method. From the above information prepare furniture and fixture account upto $31-3-15.$
View full solution →Harpal Limited has purchased a machine for $₹ 1,50,000$ on $1-4-12.$ Installation expense to it was $₹ 10,000.$ If every year $15 \%$ depreciation is chargeable, under reducing balance method, pass journal entries and prepare machine account, depreciation account for first three years. Disclose accounting effect of it in final accounts of first two years.
View full solution →Jayesh Limited had purchased some machines on $1-4-12$ for $₹ 54,000.$ Installation expense for those machines was $?\ 6000.$ Company had purchased other machines on $1-10-14$ for $₹ 47,000, $ its installation expense was $?\ 1000.$ Company provides depreciation every year at $10 \%$ under straight line method. $40 \%$ machines of first purchase were sold at $30 \%$ profit on book value on $31-3-15.$ Prepare machine account upto $31-3-15$ and show accounting effect in final accounts for every year in the books of company.
View full solution →Sheela Ltd. has purchased a machine for f $48,000$ on $1-04-2012.$ Installation expense of this machine was ? $2000. $ An estimated life of this machine is $10$ years and scrap value of machine is expected to be ? $10,000. $ Determine annual depreciation and annual depreciation rate under straight line method of depreciation. Accounting year of the company is ending on $31st$ March. Prepare, journal entries, machine account and depreciation accounts for first three years. Disclose accounting effect of it in final accounts of first year.
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