11th Accountancy Monthly Test - 4 ( Depreciation Accounting )

MABS Institution

11th Accountancy Monthly Test - 4 ( Depreciation Accounting )-Aug 2020

Time : 2.00 Hours

Part - A

Generic 5 - Answer All Question

On 1st April 2008, Sudha and Company purchased machinery for Rs 64,000. To instal the machinery expenses incurred was Rs 28,000. Depreciate machinery 10% p.a. under straight line method. On 30th June, 2010 the worn out machinery was sold for Rs 52,000. The books are closed on 31st December every year. Show machinery account.

A firm purchased a machine for Rs 1,00,000 on 1-7-2015. Depreciation is written off at 20% on reducing balance method. The firm closes its books on 31st December each year. Show the machinery account upto 31-12-2017.

Raj & Co purchased a machine on 1st January 2014 for Rs 90,000. On 1st July 2014, they purchased another machine for Rs 60,000. On 1st January 2015, they sold the machine purchased on 1st January 2014 for Rs 40,000. It was decided that the machine be depreciated at 10% per annum on diminishing balance method. Accounts are closed on 31st December every year. Show the machinery account for the years 2014 and 2015.

M/s Ramco textile mills purchased machinery on 1st April 2014 for Rs.2,00,000 on credit from M/s. Nila & Co. and spent Rs.10,000 on its installation. Depreciation is provided at 10% per annum on the written down value method. Prepare machinery account and depreciation account for the first three years. Books are closed on 31st March every year.

Ramu Brothers purchased a machine on 1st July 2016 at a cost of Rs.14,000 and spent Rs.1,000 on its installation. The firm writes off depreciation at 10% of original cost every year. The books are closed on 31st December every year. Give journal entries and prepare machinery account and depreciation account for 2 years

An asset is purchased on 1.1.2016 for Rs 25,000. Depreciation is to be provided annually according to straight line method. The useful life of the asset is 10 years and its residual value is Rs 1,000. Accounts are closed on 31st December every year. You are required to find out the rate of depreciation and give journal entries for first two years.

From the following particulars, give journal entries for 2 years and prepare machinery account under straight line method of providing depreciation:
Machinery was purchased on 1.1.2016
Price of the machine Rs 36,000
Freight charges Rs 2,500
Installation charges Rs 1,500
Life of the machine 5 years

On1^st July 2014, Asoka limited purchased a furniture costing Rs 50,000. On 1^st July 2017 the furniture was sold for Rs 20,000: Prepare furniture account, depreciation account at 10% per annum on original cost method assuming the accounts is closed on 31^st March each year

Michel & Co., purchased a Second hand Plant for Rs 4,70,000 on 1^stJuly 2001. They spent Rs30,000 on the repairs and installed the Plant. Depreciation is written off at 10% p.a. on the Straight line method. On 30^th September 2003, the Plant was found to be unsuitable and sole for Rs 3,50,000.
Prepare Plant account and Depreciation account for three years assuming that the accounts are closed on 31^st March.every year.

A Ltd., purchased a machine on 1st January 2014 for Rs 60,000. On 1st July 2014, it purchased another machine for Rs 50,000. On 1st July 2015, the company sold the machine purchased on 1st January 2014 for Rs 40,000. It was decided that the machine be depreciated at 10% per annum on diminishing balance method. Show the machinery account for the years 2014 to 2016. The accounts are closed on December 31st, every year.

On 1st October 2014, a truck was purchased for Rs 8,00,000 by Laxmi Transports Ltd. Depreciation was provided @ 15% p.a. under diminishing balance method. On 31st March 2017, the above truck was sold for Rs. 5,00,000. Accounts are closed on 31st March every year. Find out the profit or loss made on the sale of the truck.

Ragul purchased machinery on April 1, 2014 for Rs 2,00,000. On 1st October 2015, a new machine costing Rs 1,20,000 was purchased. On 30th September 2016, the machinery purchased on April 1, 2014 was sold for Rs 1,20,000. Books of accounts are closed on 31st March and depreciation is to be provided at 10% p.a. on straight line method. Prepare machinery account and depreciation account for the years 2014-15 to 2016-17:

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11th Accountancy Monthly Test - 4 ( Depreciation Accounting )

MABS Institution

11th Accountancy Monthly Test - 4 ( Depreciation Accounting )-Aug 2020

Part - A

Generic 5 - Answer All Question

A firm purchased a machine for Rs 1,00,000 on 1-7-2015. Depreciation is written off at 20% on reducing balance method. The firm closes its books on 31st December each year. Show the machinery account upto 31-12-2017.

From the following particulars, give journal entries for 2 years and prepare machinery account under straight line method of providing depreciation: Machinery was purchased on 1.1.2016 Price of the machine Rs 36,000 Freight charges Rs 2,500 Installation charges Rs 1,500 Life of the machine 5 years

On1st July 2014, Asoka limited purchased a furniture costing Rs 50,000. On 1st July 2017 the furniture was sold for Rs 20,000: Prepare furniture account, depreciation account at 10% per annum on original cost method assuming the accounts is closed on 31st March each year

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From the following particulars, give journal entries for 2 years and prepare machinery account under straight line method of providing depreciation:
Machinery was purchased on 1.1.2016
Price of the machine Rs 36,000
Freight charges Rs 2,500
Installation charges Rs 1,500
Life of the machine 5 years

On1^st July 2014, Asoka limited purchased a furniture costing Rs 50,000. On 1^st July 2017 the furniture was sold for Rs 20,000: Prepare furniture account, depreciation account at 10% per annum on original cost method assuming the accounts is closed on 31^st March each year