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CBSE Questions for Class 10 Elements Of Book Keeping And Accountancy Depreciation Quiz 4 - MCQExams.com

N Ltd. Purchase Machinery for Rs. 10,00,000 on 1.1.Installation expenses were Rs.50,000. Life of the asset is 6 years at the end of which asset can be sold at Rs. 30,000. Annual depreciation under straight line method will be = ?
  • Rs. 1,80,000
  • Rs. 1,66,667
  • Rs. 1,70,000
  • Rs. 1,71,667
Original cost =Rs. 88,200. Salvage value 4,200. Useful Life =3 years. Depreciation rate = ?
  • 33.333%
  • 31.746%
  • 34.921%
  • None of the above
Z Ltd purchased a machine on 1.1.2012 for Rs. 12,000. Installation expenses were Rs. 1,000. Residual value after 5 years Rs. 500. Depreciation is provided under SLM. Depreciation rate is 10% p.a Annual depreciation = ?
  • 1,700
  • 1,300
  • 2,100
  • 2,500
Depreciation on machine sold up to 1.10.2002 in year 2002-2003 will be -
  • Rs. 16,500
  • Rs. 3,240
  • Rs. 11,200
  • Rs. 7,900
A firm owns a fleet of vehicles acquired at a total cost of Rs. 2,64,800. Accumulated depreciation up to the beginning of the current year is RS. 1,12,400. Vehicles are depreciated at 20% p.a using the straight-line method. The written down value of the vehicles by the end of the current year would be -
  • Rs. 99,440
  • Rs. 52,960
  • Rs. 2,11,840
  • Rs. 1,52,400
Original cost =Rs. 12,00,000. Salvage value =Rs. 2,00,000. Useful Life=10 years. Annual depreciation = ? and rate of depreciation = ?
  • Rs. 1,00,000 and 10%
  • Rs. 1,00,000 and 8.33%
  • Rs. 1,20,000 and 12%
  • Rs. 1,20,000 and 8.33%
Original cost =Rs. 1,76,400. Salvage value =8,400.Useful Life6 years. Annual depreciation under SLM =?
  • 29,400
  • 28,000
  • 30,800
  • None of the above
N Ltd purchased machine for Rs. 1,00,000 on 1.1.Installation expenses were Rs. 10,000. Life of the asset is 5 years at the end of which asset can be sold at Rs. 5,000. Depreciation rate is 15% on WDV. Depreciation for 4th year =Rs. ?
  • 9,212
  • 9,673
  • 10,594
  • 10,133
In the books of SZ Ltd. the machinery account shows a debit balance of RS. 60,000 as on 1.4.The machinery was sold on 30.9.2016 for Rs. 30,000. The company charges depreciation @ 20% under Written Down Value Method. Profit/Loss on sale = ?
  • Rs. 13,200 Profit
  • Rs. 13,200 Loss
  • Rs. 6,800 Profit
  • Rs. 6,800 Loss
The written down value of machine on 31st March 2013 is Rs. 72,900. The machine was purchased on 1st April, 2010, Depreciation is charged @ 10% p.a by diminishing balance method. The cost price of the machine = ?
  • Rs. 1,00,000
  • Rs. 90,000
  • Rs. 81,000
  • Rs. 72,000
M & Co. purchased a machine for a certain sum. The firm has a policy of charging 8% depreciation on written down value. The depreciated value of machine after three years is Rs. 3,89,344. Purchase price of machine  = ?
  • Rs. 5,00,000
  • Rs. 4,60,000
  • Rs. 4,23,000
  • Rs. 5,52,000
Depreciation for the current year = ?
  • Rs. 40,000
  • Rs. 50,000
  • Rs. 60,000
  • Rs. 1,00,000
If depreciation is provided @ 10% p.a. SLM, depreciation for 3rd year will be -
  • Rs. 54,000
  • Rs. 54,500
  • Rs. 47,000
  • Rs. 55,000
Which of the following statements is TRUE?
  • Provision for doubtful debts represents the amount that cannot be collected
  • Cash balance on hand shows whether the business has earned Profit or Loss
  • Free samples received are business gains
  • The WDV of an assets depreciated on the reducing balance method can never become zero
A company purchased plant for Rs. 50,000. The useful life of the plant is 10 years and the residual value is Rs. 5,000. The management wants to depreciate it by straight line method. Rate of depreciation will be = ?
  • 8%
  • 9%
  • 10%
  • None of the above
On 1.8.2012 K Ltd. bought four Matador Vans costing Rs. 1,20,000 each. The company expected to fetch a scrap value of 25% of the cost price of the vehicles after 10 years. The vehicles were depreciated under the fixed instalment method upto 31.3.The rate of depreciation charged upto 31.3.2015 = ?
  • 10.0%
  • 9.0%
  • 8.5%
  • 7.5%
On 1.1.2015, the Plant Account showed a balance of RS. 80,000. Out of the above, a Plant whose book vale was Rs. 10,000 on that date, was sold for Rs. 6,000 on 1.4.On 1.10.2015, the plant was purchased for Rs. 20,000. Depreciation is charged at 10 p.a on SLM basis and books of accounts are closed on 31st December each year. Balance of Plant on 31.12.2015 = ?
  • Rs. 72,000
  • Rs. 92,000
  • Rs. 89,000
  • Rs. 83,000
Equipment was purchased on 1st January 2012 for Rs. 25,000 and is to be depreciated at 30% based on reducing balance method. If the company closes its books of account on 31st March every year, what would be the net book value of the equipment as at 31st December, 2013?
  • Rs. 12,250
  • Rs. 10,000
  • Rs. 17,750
  • Rs. 16,187
Extract of trial balance of Mr.S on 31−3−2015 is as follows.
ParticularsDr. Rs.Cr. Rs.
Furniture20,000-
Provision for depreciation-2,000
Addition to furniture on 31−1−20156,000-
Repair to furniture1,000
Furniture is depreciated by 10% p.a. on original cost. Furniture will be shown in balance sheet at Rs.
  • Rs. 21,900
  • Rs. 21,400
  • Rs. 16,000
  • Rs. 22,900
A boiler was purchased by a company for Rs.20 lakhs. After 2 years its cost came down to Rs.10 lakhs. The salvage value of the boiler is Rs.2 lakhs. On which cost the depreciation for the asset will be calculated in Straight Line method?
  • It will be calculated on the basis of its original cost of Rs.20 lakhs.
  • It will be calculated on the basis of Rs.18 lakhs.
  • It will be calculated on the basis of Rs.10 lakhs.
  • It will be calculated by taking the average of all three costs.
An additional purchase was made for machine on 15.06.Under straight line method ________.
  • depreciation will be changed from the date of purchase
  • depreciation will be charged from the beginning of the year
  • Both a & b
  • None of the above
For an asset owned for more than one year, the depreciation charge for the year calculated using the reducing-balance basis at the rate of 35% would be arrived at as follows:
  • 35% x cost of the asset
  • 35% x (cost of the asset - accumulated depreciation)
  • 35% x accumulated depreciation
  • 35% x (cost of the asset + accumulated depreciation)
There exists difference between the Written Down Value method and Diminishing Balance method of depreciation.
  • True
  • False
An additional purchase of Rs.2,00,000 was made for a machine on 01.12.Under straight-line method, depreciation at the rate of 10% ________.
  • will be charged for half of the year
  • will be charged from the beginning of the year
  • Both a & b
  • None of the above
In the Straight-line method of providing depreciation, depreciation _______.  
  • increase every year
  • remain constant every year
  • decreases every year
  • None of them
Invariably in diminishing balance method ________.
  • Book value becomes zero
  • Book value never becomes zero
  • Book value is negative
  • Book value is infinite
Under the diminishing balance method, depreciation _______.
  • increases every year
  • decreases every year
  • remains constant every year
  • None of them
In diminishing balance method ________.
  • amount of depreciation value keeps on decreasing over the passage of time
  • amount of depreciation value remains same over the passage of time
  • calculation of rate of depreciation is early
  • depreciation is charged on the original cost of asset
A boiler was purchased by a company for Rs20 lakh after 2 years its cost came down to Rs10 lakh at present its cost is Rs15 lakh. How will we calculated the depreciation for this asset?
  • It wilt be calculated on the basis of its original cost 20 lakh rupees.
  • It will be calculated on he basis of 15 lakh rupees worth cost
  • It will be calculated on the basis of Rs. 10 lakh cost.
  • It will be calculated by taking the average of all three costs.
The Amount changed to deprecation goes on declining in ______________.
  • Depreciation fixed method
  • Annuity method
  • Written-down value method
  • Straight line depreciation method
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Practice Class 10 Elements Of Book Keeping And Accountancy Quiz Questions and Answers