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तमिलनाडु बोर्ड ऑफ सेकेंडरी एज्युकेशनएचएससी वाणिज्य कक्षा ११

For which of the following assets, the depletion method is adopted for writing off cost of the asset?

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प्रश्न

For which of the following assets, the depletion method is adopted for writing off cost of the asset?

विकल्प

  • Plant and machinery

  • Mines and quarries

  • Buildings

  • Trademark

MCQ
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उत्तर

Mines and quarries

shaalaa.com
  क्या इस प्रश्न या उत्तर में कोई त्रुटि है?
अध्याय 10: Depreciation Accounting - Multiple choice questions [पृष्ठ २२३]

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सामाचीर कलवी Accountancy [English] Class 11 TN Board
अध्याय 10 Depreciation Accounting
Multiple choice questions | Q I 5. | पृष्ठ २२३

संबंधित प्रश्न

Select the most appropriate answer from the alternatives given below and rewrite the sentence:

The amount of depreciation reduces year after year under ______


State whether the following statement is True or False with reasons:

Depreciation is charged on fixed assets.


State whether the following statement is True or False with reasons:

Depreciation increases the value of the asset.


State whether the following statement is True or False with reasons:

The Profit or Loss on sale of fixed asset is ascertained only after charging depreciation.


If the total charge of depreciation and maintenance cost are considered, the method that provides a uniform charge is ______.


An asset is purchased on 1.1.2016 for ₹ 50,000. Depreciation is to be provided annually according to the straight-line method. The useful life of the asset is 10 years and its residual value is ₹ 10,000. 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 boiler was purchased on 1st January 2015 from abroad for ₹ 10,000. Shipping and forwarding charges amounted to 12,000. Import duty ₹ 7,000 and expenses of installation amounted to ₹ 1,000. Calculate depreciation for the first 3 years @10% p.a. on diminishing balance method assuming that the accounts are dosed 31st December each year.


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 Written Down Value Method, on 31st march every year.

Prepare Printing Machine Account for the first four years.


The Annuity Method is most suitable when:


Which depreciation method helps a firm accumulate funds for replacing an asset after its useful life?


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