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प्रश्न
Which method shall be efficient, if repairs and maintenance cost of an asset increases as it grows older.
विकल्प
Straight line method
Reducing balance method
Sinking fund method
Annuity method
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उत्तर
Reducing balance method
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संबंधित प्रश्न
Answer in One Sentence only:
Which account is debited when expenses are paid on installation of Machinery?
Select the most appropriate answer from the alternatives given below and rewrite the sentence:
The amount of depreciation remains constant every year under ______
Complete the following sentence:
Depreciation Account is a ______ account.
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.
State the limitations of straight-line method of depreciation.
Distinguish between straight-line method and written down value method of providing depreciation.
Shubhangi Trading Company of Dombivli purchased Machinery for ₹ 86,000 on 1st January 2016 and immediately spent ₹ 4,000 on its fixation and erection. On 1st October 2016 additional Machinery costing ₹ 40,000 was purchased.
On 1st October 2017, the Machinery purchased on 1st January 2016 became obsolete and was sold for ₹ 70,000. On 1st July 2017, a new Machine was also purchased for ₹ 45,000.
Depreciation was provided annually on 31st March at the rate of 12% per annum on the fixed installment method.
Prepare Machinery Account for three years and pass Journal Entries for the Third year i.e. 2017-2018.
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 firm buys a machine that wears out faster in early years but provides greater efficiency initially. Which depreciation method would most accurately reflect this pattern?
