Tamil Nadu Board of Secondary EducationHSC Commerce Class 11th
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Tamil Nadu Board Samacheer Kalvi solutions for Class 11th Accountancy Answers Guide chapter 10 - Depreciation Accounting [Latest edition]

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Class 11th Accountancy Answers Guide - Shaalaa.com
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Chapter 10: Depreciation Accounting

Multiple choice questionsVery short answer questionsShort answer questionsExercises
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Multiple choice questions [Pages 223 - 224]

Tamil Nadu Board Samacheer Kalvi solutions for Class 11th Accountancy Answers Guide Chapter 10 Depreciation AccountingMultiple choice questions [Pages 223 - 224]

Choose the correct answer

Multiple choice questions | Q I 1. | Page 223

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

  • Increasing every year

  • Decreasing every year

  • Constant for all the years

  • Fluctuating every year

Multiple choice questions | Q I 2. | Page 223

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

  • Straight line method

  • Diminishing balance method

  • Annuity method

  • Insurance policy method

Multiple choice questions | Q I 3. | Page 223

Under the written-down value method of depreciation, the amount of depreciation is ______.

  • Uniform in all the years

  • Decreasing every year

  • Increasing every year

  • None of the above

Multiple choice questions | Q I 4. | Page 223

Depreciation is caused by

  • Lapse of time

  • Usage

  • Obsolescence

  • All of these

Multiple choice questions | Q I 5. | Page 223

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

  • Plant and machinery

  • Mines and quarries

  • Buildings

  • Trademark

Multiple choice questions | Q I 6. | Page 223

A depreciable asset may suffer obsolescence due to ______.

  • Passage of time

  • Wear and tear

  • Technological changes

  • None of the above.

Multiple choice questions | Q I 7. | Page 223

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

  • Straight line method

  • Reducing balance method

  • Sinking fund method

  • Annuity method

Multiple choice questions | Q I 8. | Page 224

Residual value of an asset means the amount that it can fetch on sale at the ______ of its useful life.

  • Beginning

  • End

  • Middle

  • None

Multiple choice questions | Q I 9. | Page 224

Depreciation is to be calculated from the date when ______.

  • Asset is put to use

  • Purchase order is made

  • Asset is received at business premises

  • Invoice of assets is received

Multiple choice questions | Q I 10. | Page 224

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 ______.

  • Equal in all years

  • Equal in the first year but higher in subsequent years

  • Equal in the first year but lower in subsequent years

  • Lower in the first year but equal in subsequent years.

Very short answer questions [Page 224]

Tamil Nadu Board Samacheer Kalvi solutions for Class 11th Accountancy Answers Guide Chapter 10 Depreciation AccountingVery short answer questions [Page 224]

Very short answer questions | Q II 1. | Page 224

What is meant by depreciation?

Very short answer questions | Q II 2. | Page 224

List out the various methods of depreciation.

Very short answer questions | Q II 3. | Page 224

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

Very short answer questions | Q II 4. | Page 224

What is the annuity method?

Very short answer questions | Q II 5. | Page 224

What is sinking fund method?

Short answer questions [Page 224]

Tamil Nadu Board Samacheer Kalvi solutions for Class 11th Accountancy Answers Guide Chapter 10 Depreciation AccountingShort answer questions [Page 224]

Short answer questions | Q III 1. | Page 224

What are the objectives of providing depreciation?

Short answer questions | Q III 2. | Page 224

What are the causes for depreciation?

Short answer questions | Q III 3. | Page 224

State the advantages of straight-line method of depreciation.

Short answer questions | Q III 3. | Page 224

State the limitations of straight-line method of depreciation.

Short answer questions | Q III 4. | Page 224

State the advantages of written down value method of depreciation.

Short answer questions | Q III 4. | Page 224

State the limitations of written down value method of depreciation.

Short answer questions | Q III 5. | Page 224

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

Exercises [Pages 224 - 226]

Tamil Nadu Board Samacheer Kalvi solutions for Class 11th Accountancy Answers Guide Chapter 10 Depreciation AccountingExercises [Pages 224 - 226]

Straight line method

Exercises | Q IV 1. | Page 224

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.

Exercises | Q IV 2. | Page 224

A company purchased a building for ₹ 50,000. The useful life of the building is 10 years and the residual value is ₹ 5,000. Find out the amount and rate of depreciation under the straight-line method.

Exercises | Q IV 3. | Page 225

Furniture was purchased for ₹ 1,00,000 on 1.7.2016. It is expected to last for 5 years. Estimated scrap at the end of five years is ₹ 10,000. Find out the rate of depreciation under the straight-line method.

Exercises | Q IV 4. | Page 225

Calculate the rate of depreciation under straight-line method from the following information:

Purchased second-hand machinery on 1.1.2018 for ₹ 38,000
On 1.1.2018 spent ₹ 12,000 on its repairs
Expected useful life of the machine is 4 years
Estimated residual value ₹ 6,000.

Exercises | Q IV 5. | Page 225

Machinery was purchased on 1st January 2015 for ₹ 4,00,000. ₹ 15,000 was spent on its erection and ₹ 10,000 on its freight charges. Depreciation is charged at 10% per annum on the straight-line method. The books are closed on 31st March each year. Calculate the amount of depreciation on machinery for the first two years.

Exercises | Q IV 6. | Page 225

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.

Exercises | Q IV 7. | Page 225

From the following particulars, give journal entries for 2 years and prepare machinery account under straight-line method of providing depreciation:

Machinery was purchased on 1.1.2016
Price of the machine ₹ 36,000
Freight charges ₹ 2,500
Installation charges ₹ 1,500
Life of the machine 5 years

Exercises | Q IV 8. | Page 225

A manufacturing company purchased on 1st April 2010, a plant and machinery for ₹ 4,50,000 and spent ₹ 50,000 on its installation. After having used it for three years, it was sold for ₹ 3,85,000. Depreciation is to be provided every year at the rate of 15% per annum on the fixed installment method. Accounts are closed on 31st March every year. Calculate profit or loss on sale of machinery.

Exercises | Q IV 9. | Page 225

On 1st April 2008, Sudha and Company purchased machinery for ₹ 64,000. To instal the machinery expenses incurred was ₹ 28,000. Depreciate machinery 10% p.a. under straight-line method. On 30th June, 2010 the worn out machinery was sold for ₹ 52,000. The books are closed on 31st December every year. Show machinery account.

Exercises | Q IV 10. | Page 226

Ragul purchased machinery on April 1, 2014 for ₹ 2,00,000. On 1st October 2015, a new machine costing ₹ 1,20,000 was purchased. On 30th September 2016, the machinery purchased on April 1, 2014 was sold for ₹ 1,20,000. Books of accounts are closed on 31st March and depreciation is to be provided at 10% p.a. on straight line method. Prepare machinery account and depreciation account for the years 2014-15 to 2016-17.

Written down value method

Exercises | Q IV 11. | Page 226

An asset is purchased for ₹ 50,000. The rate of depreciation is 15% p.a. Calculate the annual depreciation for the first two years under the diminishing balance method.

Exercises | Q IV 12. | Page 226

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.

Exercises | Q IV 13. | Page 226

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.

Exercises | Q IV 14. | Page 226

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.

Exercises | Q IV 15. | Page 226

On 1st October 2014, a truck was purchased for ₹ 8,00,000 by Laxmi Transports Ltd. Depreciation was provided @ 15% p.a. under diminishing balance method. On 31st March 2017, the above truck was sold for ₹ 5,00,000. Accounts are closed on 31st March every year. Find out the profit or loss made on the sale of the truck.

Exercises | Q IV 16. | Page 226

Raj & Co purchased a machine on 1st January 2014 for ₹ 90,000. On 1st July 2014, they purchased another machine for ₹ 60,000. On 1st January 2015, they sold the machine purchased on 1st January 2014 for ₹ 40,000. It was decided that the machine be depreciated at 10% per annum on the diminishing balance method. Accounts are closed on 31st December every year. Show the machinery account for the years 2014 and 2015.

Chapter 10: Depreciation Accounting

Multiple choice questionsVery short answer questionsShort answer questionsExercises
Class 11th Accountancy Answers Guide - Shaalaa.com

Tamil Nadu Board Samacheer Kalvi solutions for Class 11th Accountancy Answers Guide chapter 10 - Depreciation Accounting

Tamil Nadu Board Samacheer Kalvi solutions for Class 11th Accountancy Answers Guide chapter 10 (Depreciation Accounting) include all questions with solution and detail explanation. This will clear students doubts about any question and improve application skills while preparing for board exams. The detailed, step-by-step solutions will help you understand the concepts better and clear your confusions, if any. Shaalaa.com has the Tamil Nadu Board of Secondary Education Class 11th Accountancy Answers Guide solutions in a manner that help students grasp basic concepts better and faster.

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Concepts covered in Class 11th Accountancy Answers Guide chapter 10 Depreciation Accounting are Methods of Depreciation, Causes of Depreciation, Objectives and Characteristics of Depreciation, Methods of Recording Depreciation, Calculation of Profit Or Loss on Sale of Asset, Depreciation, Factors Determining the Amount of Depreciation.

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Get the free view of chapter 10 Depreciation Accounting Class 11th extra questions for Class 11th Accountancy Answers Guide and can use Shaalaa.com to keep it handy for your exam preparation

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