Advertisements
Advertisements
प्रश्न
A depreciable asset may suffer obsolescence due to ______.
विकल्प
Passage of time
Wear and tear
Technological changes
None of the above.
Advertisements
उत्तर
A depreciable asset may suffer obsolescence due to technological changes.
APPEARS IN
संबंधित प्रश्न
Write the word/term/phrase which can substitute the following statement:
Excess of Selling price of fixed asset over its Written Down Value.
Select the most appropriate answer from the alternatives given below and rewrite the sentence:
The amount spent on installation of new machinery is a ______ expenditure.
State whether the following statement is True or False with reasons:
Depreciation increases the value of the asset.
Complete the following sentence:
Depreciation = `"Cost of asset - _____________"/"Estimated Working Life of the Asset"`
Complete the following sentence:
The amount spent on installation of Machinery is a ______ expenditure.
Which method shall be efficient, if repairs and maintenance cost of an asset increases as it grows older.
Machinery was purchased on 1st January 2015 for ₹ 4,00,000. ₹ 15,000 was spent on its erection and ₹ 10,000 on its freight charges. Depreciation is charged at 10% per annum on the straight-line method. The books are closed on 31st March each year. Calculate the amount of depreciation on machinery for the first two years.
On 1st October 2014, a truck was purchased for ₹ 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 ₹ 5,00,000. Accounts are closed on 31st March every year. Find out the profit or loss made on the sale of the truck.
M/s Omkar Enterprise Jalgaon acquired a Printing Machine for ₹75,000 on 1 Oct 2015 and spent ₹5,000 on its transport and installation. Another Machine for ₹45,000 was purchased on 1st Jan 2017. Depreciation is charged at the rate of 20% on the Written Down Value Method, on 31st March every year.
Prepare Printing Machine Account for the first four years.
A company uses a method that results in high depreciation expense initially and lower in later years. This pattern benefits them because:
