Depreciation(11th Grade > Accountancy ) Questions and answers for exam Preparation

11th Grade > Accountancy

DEPRECIATION MCQs

Total Questions : 61 | Page 6 of 7 pages

Question 51. Lease for 5 year Rs.10, 000. Rate of interest 5% Reference to annuity table 0.230975. The depreciation per year is

Rs.1,000
Rs.115.48
Rs.230.97
Rs.2,309.75

Discuss Question

Answer: Option D. -> Rs.2,309.75

Question 52. Machinery cost Rs.40, 000. Scrap value Rs.10, 000. Life 5 years. Rate of interest 5%. Reference to sinking fund table 0.180975. The depreciation per year will be

Rs.6,000
Rs.2,000
Rs.7,239
None of these

Discuss Question

Answer: Option C. -> Rs.7,239

Question 53. On 1st January, 2008 A Ltd. purchased a machinery of Rs.6, 000 and also purchased a second hand machinery as on 1st July, 2008 of Rs.5, 000. Both the machinery were sold on 31st April, 2009 for Rs.5, 000 and Rs.4, 200 respectively. The company charges depreciation @ 20% p.a. on diminishing balance method. What will be the profit or loss on sale of both machinery?

No profit, no loss for both machinery.
For 1st machine ‘profit’ and for 2nd machine ‘loss’.
For 1st machine ‘profit’ and for 2nd machine ‘no profit no loss’.
Loss for both the machinery.

Discuss Question

Answer: Option C. -> For 1st machine ‘profit’ and for 2nd machine ‘no profit no loss’.

Question 54. The cost of the asset purchased on 1st April, 2008 was Rs.24, 000. the depreciation was provided at 10% on Straight Line Method. The asset was sold on 31st Jan, 2009 for Rs.18, 000. Which of the following statements is/are true?

Depreciation provided for the year was Rs.2,400
Loss on the sale of asset was Rs.4,000
No depreciation will be provided
Both (a) and (b)

Discuss Question

Answer: Option B. -> Loss on the sale of asset was Rs.4,000

Question 55. Machinery was purchased for Rs.50, 000 two years ago. The current book value of the machinery is Rs.36, 125. If the depreciation is charged under written down value method, the rate of depreciation is :

Discuss Question

Answer: Option D. -> 15%

Question 56. The written down value or an asset after three years of depreciation on the reducing balance method @ 10% p.a. is Rs.18, 225. Its original value must have been ________.

Rs.40,000
Rs.25,000
Rs.30,000
None of these

Discuss Question

Answer: Option B. -> Rs.25,000

Question 57. A company purchased a new machine for Rs.500,000 and machine’s test run was started to make sure that machine works properly. There was expense of Rs.5000 incurred on test run, however income of test production were Rs.2000. What is the total cost of machine?

Rs.500,000
Rs.505,000
503,000
495,000

Discuss Question

Answer: Option C. -> 503,000

Question 58. Depreciation available, if asset is used for less than 180 days during the year of acquisition shallbe of block rate:

50%
20%
100%
15%

Discuss Question

Answer: Option A. -> 50%

Question 59. If the Plant & Machinery is used for less than 180 days in the year of its acquisition, then, atwhat rate the depreciation on that asset should be provided under section 32?