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If the cost of the Computer is ₹ 40,000 and depreciation is to be charged at 8% p.a. Calculate the amount of depreciation. - Book Keeping and Accountancy

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प्रश्न

If the cost of the Computer is ₹ 40,000 and depreciation is to be charged at 8% p.a. Calculate the amount of depreciation.

योग
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उत्तर

Depreciation p.a. = Cost of computer (×) percentage

=  `40,000 × 8/100`

=  ₹ 3,200 p.a.

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अध्याय 7: Depreciation - Exercises [पृष्ठ २४४]

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बालभारती Book Keeping and Accountancy [English] Standard 11 Maharashtra State Board
अध्याय 7 Depreciation
Exercises | Q 8. 2. | पृष्ठ २४४

संबंधित प्रश्न

Answer in One Sentence only:

Which account is credited when depreciation is charged?


Answer in One Sentence only:

What is the formula to calculate depreciation by Straight Line Method?


Write the word/term/phrase which can substitute the following statement:

The period for which the asset remains in working condition.


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

Depreciation is charged only on ______ assets.


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

Depreciation is charged on Current Assets only.


Do you agree or disagree with the following statement:

The rate of depreciation depends upon the life of fixed asset.


Do you agree or disagree with the following statement:

By charging depreciation on fixed assets ascertainment of true and fair financial position is possible.


Complete the following sentence:

Under ______ system, the amount of depreciation changes every year.


Complete the following sentence:

The amount spent on installation of Machinery is a ______ expenditure.


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


List out the various methods of depreciation.


What is sinking fund method?


Distinguish between straight-line method and written down value method of providing depreciation.


A firm purchased a plant for ₹ 40,000. Erection charges amounted to ₹ 2,000. The effective life of the plant is 5 years. Calculate the amount of depreciation per year under the straight-line method.


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


A firm acquired a machine on 1st April 2015 at a cost of ₹ 50,000. Its life is 6 years. The firm writes off depreciation @ 30% p.a. on the diminishing balance method. The firm closes its books on 31st December every year. Show the machinery account and depreciation account for three years starting from 1st April 2015.


Correct the following statement and rewrite the statement.

Underwritten down value method depreciation is calculated on the original cost of an asset.


A machine costing ₹ 23,000 is estimated to have a life of 7 years and the scrap value is estimated at ₹ 2,000 at the end of its useful life. Find out the amount of depreciation p.a.


Mr. ‘X’ purchased Furniture on 1st October 2015 at ₹ 2,80,000 and spent ₹ 20,000 on its installation. He provides depreciation at 6% under the straight-line method on 31st March 2016. Calculate the amount of depreciation.


M/s Sitaram and Co Purchased a Machinery on 1st January 2016 for ₹ 2,00,000. The company provides depreciation @ 10% p.a. on Reducing Balance Method on 31st March every year. Calculate Written Down Value of Machinery as of 31st March 2017.


On 1st Jan 2015, Triveni Traders Raigad purchased a Plaint for ₹ 12,000, and installation charges being ₹ 3,000. On 1st July 2016 another Plant was purchased for ₹ 25,000, on 1st April 2017 another Plant was purchased for ₹ 27,000, wages paid for installation amounted to ₹ 2,000. Carriage paid for the Plant amounted to ₹ 1,000. Show Plant Account up to 31st March 2018 assuming that the rate of depreciation is @ 10% p.a. on Straight Line Method.


M/s Omkar Enterprise Jalgaon acquired a Printing Machine for ₹ 75,000 on 1st 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.


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.


Which of the following methods charges an equal amount of depreciation every year?


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


The Revaluation Method is best suited for which type of assets?


The Double Declining Balance Method applies depreciation:


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