CBSE Questions for Class 10 Elements Of Book Keeping And Accountancy Depreciation Quiz 6 - MCQExams.com

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 installment method up to 31.3.The rate of depreciation charged up to 31.3.2015 = ?
  • $$10.0\%$$
  • $$9.0\%$$
  • $$8.5\%$$
  • $$7.5\%$$
Original Cost = Rs$$1,00,000$$. Life = $$5$$ years. Expected salvage value = Rs$$2,000$$. What will be the rate of depreciation p.a?
  • $$20.0\%$$
  • $$19.8\%$$
  • $$19.6\%$$
  • $$19.4\%$$
A Ltd.acquired a machine on $$1st$$ January, $$2010$$ at a cost of Rs$$14,000$$ and spent Rs$$1,000$$ on its installation. The firm writes off depreciation at $$10\%$$ p.a of the original cost every year. The books are closed on $$31st$$ December every year. The books are closed on $$31st$$ December every year. After $$3$$ years machine sold for Rs$$9,000$$. Profit/Loss on sale = ?
  • Profit-Rs$$1,500$$
  • Loss - Rs$$1,500$$
  • Profit - Rs$$800$$
  • Loss - Rs$$800$$
N.Ltd, purchased machine for Rs 1,00,000 on 1.1.Installation expenses were Rs 10,Life of the asset is 5 years at the end of which asset can be sold at Rs 5,Depreciation rate is  15% on WDV. Depreciation for 4th year = Rs______?______.
  • $$9,212$$
  • $$9,673$$
  • $$10,594$$
  • $$10,133$$
Machinery costing Rs$$20,00,000$$ was purchased on $$1.4.2012$$. The installation charges amounting Rs$$5,00,000$$ were incurred. The depreciation at $$10\%$$ p.a. on straight line method for the year ended $$31st$$ March, $$2013$$ will be ___________________.
  • $$1,50,000$$
  • $$2,50,000$$
  • $$2,00,000$$
  • $$50,000$$
Consider the following information:
Rate of depreciation under the written down method = $$20\%$$; Original cost of the asset = Rs$$1,00,000$$; Residual value of the asset at the end of useful life = Rs.$$40,960$$.
Estimated useful life of the asset = ?
  • $$4$$ years
  • $$5$$ years
  • $$6$$ years
  • $$7$$ year
S.Ltd. acquired a machine on 1st January 2010 at a cost of Rs 1,40,000 and spent Rs 10,000 on its installation. The firm writes off depreciation at  15% on WDV. The books are closed on 31st December every year. After 3 years machine sold for Rs 87,Profit Loss on sale =?
  • Profit - Rs$$1,023$$
  • Loss-$$1,023$$
  • Profit - Rs$$5,119$$
  • Loss - Rs$$5,119$$
Depreciation amount is the __________________.
  • Difference between historical cost and the market value of an asset
  • Historical cost less estimated salvage value
  • Historical cost less depreciation till date
  • None of these
A Company purchased plant for Rs.The useful life of the plant is 10 years and the residual value is Rs.The management wants to depreciate it by straight line method. What will be the rate of depreciation?
  • $$8\%$$
  • $$9\%$$
  • $$10\%$$
  • None of the above
The written down value of machine on 31st March 2013  is Rs 72,The machine was purchased on 1st April,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$$72,000$$
Which method is followed to have a uniform charge for depreciation and repair and maintenance together ?
  • Written Down Value Method
  • Straight Line Method
  • Double Declining Method
  • Sum of Years Digits Method
Consider the following data pertaining to M/s. E Ltd. who constructed a cinema house:
Particular                                                                       Rs.
Cost of second hand furniture                                  90,000
Cost of the repainting the furniture                          10,000 
Wages Paid to employees for fixing the furniture      2,000
Fire insurance premium                                              1,000
The amount debited to Furniture Account is ____________.
  • Rs. 90,000
  • Rs. 91,000
  • Rs. 1,00,000
  • Rs. 1,02,000
On 1.1.2014, the Plant Account showed a balance of Rs.80,Out of the above,  a Plant whose book value was Rs10,000 on that date was sold for Rs6,000 on 1.4.On 1.10.2015, the plant was purchased for Rs20,Depreciation is charged at 10\% p.a. on SLM basis and books of accounts are closed on 31st December each year. Loss on sale of Plant on = ?.
  • Rs.$$2,750$$
  • Rs.$$8,750$$
  • Rs.$$6,000$$
  • Rs.$$9,000$$
Date of Purchase 1st July, Purchase Price of Machine Rs. 80,000, Installation Charges Rs. 20,Residual Value  Rs. 40,Useful life 4 years, Accounting year - Financial year.
The depreciation under SLM for the first year will be:
  • Rs. 22,500
  • Rs. 14,760
  • Rs. 11,070
  • None of these
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$$12,545$$
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,Purchase price of machine = ?
  • Rs$$5,00,000$$
  • Rs$$4,60,000$$
  • Rs$$4,23,000$$
  • Rs$$5,52,000$$
On $$1st$$ April $$2015$$ in Sethi's Ledger, furniture account showed a balance of Rs$$2,00,000$$. On $$1st$$ October, $$2015$$ Sethi purchased new furniture by paying Rs$$5,000$$ and giving old furniture whose book value on $$1st$$ April $$2015$$ was Rs $$12,000$$ to the seller. Sethi provides depreciation on furniture @ $$10\%$$ p.a on diminishing balance method. The net book value of furniture in Seti's book on $$31.3.2016$$=?
  • Rs.$$1,85,080$$
  • Rs.$$1,83,960$$
  • Rs.$$1,84,780$$
  • Rs.$$2,04,400$$
X Ltd. Purchased a machine on 1st Jan for Rs. 2,40,Installation expenses were Rs. 20,Residual value after 5 years Rs. 10,On 1st July, expenses for repairs were incurred to the extent of Rs. 4,Depreciation rate = 10% Depreciation for 4th year will be:
  • Rs. 26,000
  • Rs. 34,000
  • Rs. 42,000
  • Rs. 50,000
Consider the following information:
I. Rate of depreciation under the written down method= 20%
II. Original cost of the asset = Rs. 2,00,000
III. Residual value of the asset at the end of useful life= Rs. 81,920
Depreciation for 3rd year = 
  • Rs. 40,000
  • Rs. 32,000
  • Rs. 25,600
  • Rs. 20,480
The W.D.V of an asset after three years of depreciation on the reducing balance method @ 10% pa. is its.36,What was its original value?
  • Rs.40,000
  • Rs. 50,000
  • Rs.45,000
  • Rs. 70,250
On $$1^{st}$$ January, 2006 A Ltd purchased a machine for Rs 50,000 and spent Rs 4,000 on its carriage and Rs. 2000 on its installation. Its useful life is 10 years and scrap is Rs.Depreciation for the year under fixed installment method will be:
  • Rs. 4,600
  • Rs. 5,000
  • Rs. 4,800
  • Rs. 4,500
In which of the following methods, is the cost of the asset written off in equal proportion during its economic life?
  • Straight line method
  • Written down value method
  • Units-of-production method
  • Sum-of-the years'-digit method
Date of Purchase of Machine 1.4.2012, Cost: Rs. 12,00,000, Rate of Depreciation: 10% p.a. Straight Line Basis. On 1.10.2014, a new machinery was purchased for Rs. 80,The closing balance of Provision for Depreciation Account as at 31.3.2015 will be:
  • Rs. 1,20,000
  • Rs. 2,28,000
  • Rs. 3,25,200
  • Rs. 3,64,000
The balance in the accumulated provision for depreciation account of a company as at the beginning of the year was Rs. 2,00,000 when the original cost of the assets amounted to Rs. 10,00,The company charges 10% depreciation on a straight line basis for all the assets including those which have been either purchased or sold during the year. One such asset costing Rs. 5,00,000 with accumulated depreciation as at the beginning of the year of Rs. 80,00,000 was deposited off during the year.
Depreciation for the year is __________.
  • Rs. 40,000
  • Rs. 50,000
  • Rs. 60,000
  • Rs. 1,00,000
In which of the following methods, the cost of the asset is not spread over in equal proportion during its useful economic life?
  • Sum of years Digits Method
  • Written down value method
  • Units of production method
  • All of the above
The balance of Glass & Cutlery A/c on 01.01.2014 is Rs. 28,Glass & Cutlery purchased during the year were Rs. 16,Depreciation is to be charged on the above as follows-
-1/5th of its value is to be written off in the year of purchase, and 
-2/5th in each of the next 2 years. 
Of the stock of Glass & Cutlery as on 01.01.2014, 1/2 was one year old and 1/2 was 2 years old.
Purchase are made on 1st January.
Closing Balance of Glass & Cutley A/c is _____.
  • Rs. 28,000
  • Rs. 28,500
  • Rs. 26,800
  • Rs. 28,600
Date of Purchase - 1st July, Purchase Price of Machine Rs. 80,000, Installation Charges Rs. 20,000, Residual Value Rs. 40,960, Useful life 4 years, Accounting year -Financial year. Date when Machine was put to use- 1st Oct.
The depreciation under SLM for the first year will be:-
  • Rs. 12,500
  • Rs. 11, 070
  • Rs. 7,380
  • None of these
According to the Income Tax Act, which method of charging depreciation is provided?
  • Reducing Balance Method
  • Sinking Fund
  • Annuity Method
  • Straight Line Method
A machine was bought at a cost of Rs. 5 lacs on 1.1.02 During its life of 10 years it will be depreciated on SLM basis. On 31.12.08 the machine was sold for Rs. 50,Find out the profit/loss?
  • Loss of Rs. 1,50,000
  • Loss of Rs. 100000
  • Profit of Rs.1,00,000
  • Profit of Rs. 1,50,000
Which method of depreciation is effective if repairs and maintenance cost of an asset increases as it grows old _________________.
  • Straight line method
  • Sinking Fund
  • Annuity
  • Reducing Balance
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Practice Class 10 Elements Of Book Keeping And Accountancy Quiz Questions and Answers