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महाराष्ट्र राज्य शिक्षण मंडळएचएससी कला (इंग्रजी माध्यम) इयत्ता ११ वी

State whether the following Statement is True or False with reasons: Depreciation is charged on fixed assets. - Book Keeping and Accountancy

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प्रश्न

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

Depreciation is charged on fixed assets.

पर्याय

  • True

  • False

MCQ
चूक किंवा बरोबर
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उत्तर

This statement is True.
To find out actual profit or loss of business and to make provision for the replacement of assets. depreciation is charged on fixed assets.
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पाठ 7: Depreciation - Exercises [पृष्ठ २४२]

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बालभारती Book Keeping and Accountancy [English] Standard 11 Maharashtra State Board
पाठ 7 Depreciation
Exercises | Q 4. 1. | पृष्ठ २४२

संबंधित प्रश्‍न

Answer in One Sentence only:

What is a ‘Scrap Value’ of an asset?


Answer in One Sentence only:

What is Fixed Instalment Method?


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.


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:

Depreciation is charged on ______ asset.


Complete the following sentence:

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


Complete the following sentence:

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


Complete the following sentence:

Depreciation = `"Cost of asset - _____________"/"Estimated Working Life of the Asset"`


Complete the following sentence:

Depreciation Account is a ______ account.


Which method shall be efficient, if repairs and maintenance cost of an asset increases as it grows older.


Depreciation is to be calculated from the date when ______.


List out the various methods of depreciation.


Give the formula to find out the amount and rate of depreciation under straight line method of depreciation.


What is the annuity method?


State the limitations of straight-line method of depreciation.


State the limitations of written down value method of depreciation.


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


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.


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


Vishal Company, Dhule, purchased Machinery costing ₹ 60,000 on 1st April 2016. They purchased further Machinery on 1st October 2017, costing ₹ 30,000, and on 1st July 2018, costing ₹ 20,000. On 1st Jan 2019, one-third of the Machinery, which was purchased on 1st April 2016, became obsolete and it was sold for ₹ 18,000.
Assume that, company account closes on 31st March every year.
Show Machinery Account for the first three(3) years and pass journal entries for the Third year, after charging depreciation at 10% p.a. on Written Down Value Method.


On 1st April 2015, Suman Traders purchased Machinery for ₹ 30,000. On 1st Oct. 2015, they purchased further Machinery costing ₹ 20,000.
On 1st Oct. 2016, they sold the Machine purchased on 1st April 2015 for ₹ 18,000 and brought another Machine for ₹ 15,000 on the same date.
Depreciation is provided on Machinery @ 20% p.a. on the Diminishing Balance Method and the financial year closes on 31st March every year.
Prepare the Machinery Account and Depreciation Account for the year 2015-16, 2016-17, and 2017-18.


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.


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


The Annuity Method is most suitable when:


The Double Declining Balance Method applies depreciation:


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