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

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प्रश्न

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

पर्याय

  • Plant and machinery

  • Mines and quarries

  • Buildings

  • Trademark

MCQ
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उत्तर

Mines and quarries

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  या प्रश्नात किंवा उत्तरात काही त्रुटी आहे का?
पाठ 10: Depreciation Accounting - Multiple choice questions [पृष्ठ २२३]

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सामाचीर कलवी Accountancy [English] Class 11 TN Board
पाठ 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 spent on installation of new machinery is a ______ expenditure.


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 need not be charged when business is making losses.


Complete the following sentence:

Wages paid for Installation/fixation of Machinery is debited to ______ account.


Under straight-line method, the amount of depreciation is ______.


If the rate of depreciation is the same, then the amount of depreciation under straight-line method vis-à-vis written down value method will be ______.


State the limitations of straight-line method of depreciation.


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.


On 1st April 2015, Farid of Nasik purchased a Motor Car for ₹ 55,000. The scrap value of the Motor Car was estimated at ₹ 10,000 and its estimated life is 10 years. The Registration charges of the Motor Car was ₹ 5,000.

Show Motor Car Account for first four years, assuming that the books of accounts are closed on 31st March every year.


On 1st April 2015, Farid of Nasik purchased a Motor Car for ₹ 55,000. The scrap value of the Motor Car was estimated at ₹ 10,000 and its estimated life is 10 years. The Registration charge for the Motor Car was ₹ 5,000.

Show Motor Car Account for first four years, assuming that the books of accounts are closed on 31st March every year.


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