11th Accountancy Weekly Test - 1 ( Depreciation Accounting )

MABS Institution

11th Accountancy Weekly Test - 1 ( Depreciation Accounting )-Aug 2020

Time : 1.30 Hours

Part - A

Multiple Choice Question - Answer All Question

Depreciation provided on machinery is debited to

Depreciation account
Machinery account
Trading account
Provision for depreciation account

For oil wells _____________method Of depreciation is to be followed

Exhaustion
Wear & Tear
Depletion
None of the above

The method of depreciation prescribed by the Indian Companies Act, 2013 is ____________

Straight line method
Diminishing balance method
Revaluation method
Sinking Fund method

Cash received from sale of fixed asset is credited to

Profit and loss account
Fixed asset account
Depreciation account
Bank account

The wear and tear of most of the fixed assets leads to ____________ of that asset.

depreciation
appreciation
revaluation
evapotation

____________ method is appropriate for the fixed assets having certain period of working life.

Diminishing balance
Sinking fund
Straight line
Depreciation fund

____________ is also knonw as written downvalue method or reducing instalments method.

Straight line method
Diminishing balance
Annuity method
Revaluation method

The value of fixed asset after deducing depreciation is known as its ________________

Book value
Market value
Face value
Realisable value

In the accounting records, the fixed assets are normally recorded __________.

At Cost
At Book Value
At Scrap Value
At replacement value

___________ method is recoglnised and accepted by income tax authorities.

Straigh line
Annuity method
Diminishing balance
Depreciation fund

Part - B

Generic 2 - Answer All Question

Depreciation is a non-cash expense which should not be provided for in the profit and loss account comment.

An asset was purchased for Rs 1,00,000. The rate of depreciation is 10% per annum. Calculate the annual depreciation for the first two years under the diminishing balance method .

A furniture costing Rs 5,000 was purchased on 1.1.2016, the installation charges being Rs 1,000. The furniture is to be depreciated @10% p.a. on the diminishing balance method. Pass journal entries for the first two years.

List out the various methods of depreciation.
On 1.1.2017 a firm purchased a machine at a cost of Rs.1,00,000. Its life was estimated to be 10 years with a scrap value of Rs.10,000. Compute the amount of depreciation to be charged at the end of each year.

Part - C

Generic 3 - Answer All Question

A firm purchased a plant on 1.1.2018 for Rs.9,000 and spent Rs.1,000 as erection charges. Calculate the amount of depreciation for the year 2018 @ 15% per annum under the written down value method. Accounts are closed on 31st March every year.

What is Depletion method?

On 1st April 2015, Kumar purchased a machine for Rs.80,000 and spent Rs.20,000 on its installation. The residual value at the end of its expected useful life of 8 years is estimated at Rs.4,000. On 30th September 2017, the machine is sold for Rs.50,000. Depreciation is to be provided according to straight line method. Prepare Machinery Account. Accounts are closed on 31st December every year.
A Motor car was purchased on 1st January, 2013 for Rs 25,000, depreciated at 10% on diminishing balance method. It was ,sold for Rs 16,500 on 3^st December, 2015, Prepare motor car· account. The accounts are closed on 31^st December every year.

State the advantages and limitations of written down value method of depreciation.

Part - D

Generic 5 - Answer All Question

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

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.

A manufacturing company purchased on 1 April, 2010, a plant and machinery for Rs 4,50,000 and spent Rs 50,000 on its installation. After having used it for three years, it was sold for Rs 3,85,000. Depreciation is to be provided every year at the rate of 15% per annum on the fixed instalment method. Accounts are closed on 31st March every year. Calculate profit or loss on sale of machinery.
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.

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.

Comment

Add Comment

InstaQB

Institutions

12th Standard English Medium

12th Standard Tamil Medium

11th Standard English Medium

11th Standard Tamil Medium

10th Standard English Medium

9th Standard English Medium

8th Standard English Medium

7th Standard English Medium

Class XII

Class XI

12Th Standard

11Th Standard

10Th Standard

9Th Standard

11th Accountancy Weekly Test - 1 ( Depreciation Accounting )

MABS Institution

11th Accountancy Weekly Test - 1 ( Depreciation Accounting )-Aug 2020

Part - A

Multiple Choice Question - Answer All Question

Depreciation provided on machinery is debited to

For oil wells _____________method Of depreciation is to be followed

The method of depreciation prescribed by the Indian Companies Act, 2013 is ____________

Cash received from sale of fixed asset is credited to

The wear and tear of most of the fixed assets leads to ____________ of that asset.

____________ method is appropriate for the fixed assets having certain period of working life.

____________ is also knonw as written downvalue method or reducing instalments method.

The value of fixed asset after deducing depreciation is known as its ________________

In the accounting records, the fixed assets are normally recorded __________.

___________ method is recoglnised and accepted by income tax authorities.

Part - B

Generic 2 - Answer All Question

Depreciation is a non-cash expense which should not be provided for in the profit and loss account comment.

An asset was purchased for Rs 1,00,000. The rate of depreciation is 10% per annum. Calculate the annual depreciation for the first two years under the diminishing balance method .

A furniture costing Rs 5,000 was purchased on 1.1.2016, the installation charges being Rs 1,000. The furniture is to be depreciated @10% p.a. on the diminishing balance method. Pass journal entries for the first two years.

List out the various methods of depreciation.

On 1.1.2017 a firm purchased a machine at a cost of Rs.1,00,000. Its life was estimated to be 10 years with a scrap value of Rs.10,000. Compute the amount of depreciation to be charged at the end of each year.

Part - C

Generic 3 - Answer All Question

A firm purchased a plant on 1.1.2018 for Rs.9,000 and spent Rs.1,000 as erection charges. Calculate the amount of depreciation for the year 2018 @ 15% per annum under the written down value method. Accounts are closed on 31st March every year.

What is Depletion method?

A Motor car was purchased on 1st January, 2013 for Rs 25,000, depreciated at 10% on diminishing balance method. It was ,sold for Rs 16,500 on 3st December, 2015, Prepare motor car· account. The accounts are closed on 31st December every year.

State the advantages and limitations of written down value method of depreciation.

Part - D

Generic 5 - Answer All Question

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

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.

Comment

Other Study material

11th Accountancy Monthly Test - 2 ( Rectification

11th Accountancy Weekly Test - 2 ( Rectification o

11th Accountancy Weekly Test - 3 ( Rectification o

11th Accountancy Weekly Test - 4 ( Rectification o

11th Accountancy Monthly Test - 1 ( Rectification

11th Accountancy Weekly Test - 1 ( Rectification o

11th Accountancy Monthly Test - 4 (Computerised Ac

11th Accountancy Monthly Test - 3 ( Depreciation A

11th Accountancy Monthly Test - 2 ( Depreciation A

11th Accountancy Monthly Test - 1 ( Depreciation A

11th Accountancy Weekly Test - 4 ( Depreciation Ac

11th Accountancy Weekly Test - 3 ( Depreciation Ac

11th Accountancy Weekly Test - 2 ( Depreciation Ac

11th Accountancy Weekly Test - 1 ( Depreciation Ac

11th Accountancy Monthly Test - 4 ( Rectification

Tamilnadu Stateboardszs - Class

A Motor car was purchased on 1st January, 2013 for Rs 25,000, depreciated at 10% on diminishing balance method. It was ,sold for Rs 16,500 on 3^st December, 2015, Prepare motor car· account. The accounts are closed on 31^st December every year.

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