A Machine is purchased for Rs.2,50,000 on 1.1.2010. It can produce 30,000 units during its useful life and its estimated scrap value is Rs.10,000. Pattern of production over the next 4 year is as follows :

2010-6,250 units, 2011-2,275 unit 2012-12,000 units 2013-3,452 units. The WDV  of the machine after 3rd year will be :

A Machine is purchased for Rs.2,50,000 on 1.1.2010. It can produce 30,000 units during its useful life and its estimated scrap value is Rs.10,000. Pattern of production over the next 4 year is as follows :

2010-6,250 units, 2011-2,275 unit 2012-12,000 units 2013-3,452 units. The WDV  of the machine after 3rd year will be :

Cost of machine Rs.1,00,000, scrap value Rs.10,000 and life is 4 years. What will be amount of depreciation according to sum of years digits method in the 3rd year ?

Machinery has a life of 4 years. If it is depreciated by the Reducing Balance Method, at the end of 4 years, its book value is 24 % of its Original cost. The rate of depreciation applied is :

Rohan Ltd. is in the business of extracting Coal from Mines. It should charge depreciation as per :

On August 1, 2011 Key Travels Ltd. bought five trucks costing Rs.12,00,000 each. The company expected to fetch a scrap value of 25 % of the cost price of the vehicles after ten years. The vehicles were depreciated under the fixed installments method upto March 31, 2014. The rate of depreciation charged upto March 31, 2014, was :

Which of the following statements are false ?

1. The term ‘depreciation’ , ‘depletion’ and ‘amortization’ convey the same meaning.
2. Provision for depreciation A/c is debited when provision for depreciation A/c is created.
3. The main purpose of charging the profit and loss A/c with the amount of depreciation is to spread the cost of an asset over its useful life for the purpose of income determination.

The amount of depreciation ____ under straight line method.

M/s Daga & Co. installed a machinery for Rs.5,00,000 on 01.01.2007. They were charging depreciation on straight line basis taking useful life of the machine as 10 years. In December 2013 they found that the machine became obsolete and could not be used. The machine can fetch only Rs.50,000. The loss of Rs.____ due to obsolescence is ___ .

The book value of an asset on 1-4-14 is Rs.80,000. The asset is sold on 31-12-2014 Rs.60,000. If the rate of depreciation is 15 % WDV. What is the profit or loss on sale of the asset ?

During 2014-15, Gee Ltd, purchased a printing machinery and made the following payments in relation to it :

Rs.                    Rs.

Cost as per suppliers list                    6,30,000

Less: agreed discount                              30,000         6,00,000

Delivery charges                                                                  15,000

Erection charges                                                                  15,000

Annual maintenance charges                                            25,000

Additional spares to increase

Capacity of the machine                                                       40,000

Annual Insurance Premium                                                 10,000

Assume Depreciation @ 10 % p.a. WDV, depreciation for 3rd year is :

The portion of the acquisition cost of the asset, yet to be allocated is known as :

Determine the amount of depreciation charged during the year 2013-14 from the following information :

During 2010-11,

Machinery Purchase cost = Rs.10,00,000

Useful life : 5 years

Salvage value : 10%

Method of depreciation : sum of year’s digits method.

A firm purchased machinery for Rs.10 lakhs. The machine was depreciated @ 15 % p.a. under WDV. After 4 years the firm decides to change the method of depreciation to SLM @ 10 % with retrospective effect. What will be the journal entry for the excess depreciation charged amounted Rs.77,994 ?

S & Sons purchased a machinery on 1st April, 2015 for Rs.5,60,000. The scrap value in ten years time is expected to be Rs.42,000. What is the rate of depreciation on original cost, if the depreciation is written off by equal installments every 31st March ?

Cost of the plant RS.4,00,000 scrap value Rs.40,000 and useful life 4 years. What will be amount of depreciation according to sum of years digits method in the first year ?

Under this method, the annual charge for depreciation decreases from year to year, so that the earlier year suffer to the benefit of the later year. Also, under this method, the value of asset can never be completely extinguished. The other advantage of this method is that the total charge to revenue is uniform, when the depreciation is high, repairs are negligible, and as the repairs increase, the burden of depreciation gets lesser and lesser. This method of depreciation is :

Rate of Depreciation under the written down value method @ 15 %

Original cost of the machine = Rs.10,00,000

Residual value at the end of useful life = Rs.2,00,000

Depreciation for the 1st year will be

A machine was purchased on 1.4.12 for Rs.15,00,000 with scrap value of Rs.40,000 at the end of its useful life. Depreciation was provided @ 15% p.a. on diminishing balance method. On 1st July, 2015, the machinery got damaged and was disposed off for Rs.9,04,385. As a result of this there will be :

A plant was purchased on 1.4.2010 for Rs.3,50,000. The useful life was five year and the scrap value was Rs.50,000. The rate of depreciation under SLM will be :

Which of the following statements are false ?

1. The term ‘depreciation’ , ‘depletion’ and ‘amortization’ convey the same meaning
2. Provision for depreciation A/c is debited when provision for depreciation A/c is created
3. The main purpose of charging the Profit and Loss A/c with the amount of depreciation is to spread the cost of an asset over its useful life for the purpose of income determination.

Cost of machinery Rs.60,000. They charged depreciation @ 20 % on SLM method. In 2nd year they decided to change method and adopt WDV method @ 20 %. If machine was sold for Rs.30,000 at the end of 3rd year, calculate the amount of loss.

A new machinery was purchased by X Ltd. on 1st January, 2013. It was depreciated as per WDV @ 15 %. Its opening WDV as on 1.1.2016 was Rs.3,68,475. Now the company wants to change the method of depreciation to 10 % SLM. The Original cost of machinery is _______ .

Insurance claim received on account of machinery completely damaged by fire. This will be :

The assets which were earlier revalued upward and new revalued downward, to the extent of earlier upward revaluation amount should be :

A second hand machine was purchased for Rs.1,00,000 through broker who charged 2 % brokerage. It was brought to factory after incurring transportation cost of Rs.1,500. It was repaired at a cost of Rs.3,000 and then installed at a cost of Rs.4,500. Trial run cost was Rs.7,000. The commercial production began and continued upto 11 months at the end of which, this machine was again repaired at a cost of Rs.8,000. The amount to be debited to the machinery A/c will be :

Original cost of the asset Rs.2,00,000. If rate of depreciation is 10 % per annum under WDV method, what would be the value of asset at the end of 2nd year ?

For charging depreciation, on which of the following assets, the depletion method is adopted ?

Depreciation accounting is :

Which of the following assets is usually assumed to be not depreciating ?