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CBSE Questions for Class 10 Elements Of Book Keeping And Accountancy Depreciation Quiz 7 - MCQExams.com

A machinery is depreciated by Rs. 2000 every year. Which method is being used to calculate depreciation?
  • Written Down value method
  • Straight line method
  • Sum of years Digit method
  • None of these
Cost of machinery = Rs.2,52,000
Salvage value = Rs.12,000
Useful life = 6 years
Annual depreciation under straight line method will be: 
  • Rs. 42,000
  • Rs. 40,000
  • Rs. 15,000
  • Rs. 28,000
In case of reducing balance method of charging depreciation is charged on the:
  • Original Cost
  • Original Cost less Scrap value
  • Market Value
  • Written Down value
A machine was purchased on 1st April 2007 for Rs 5,00,000 and 1st October 2007 for Rs 2,00,Calculate depreciation @ 20% p.a. on written down value method for the year ending 31st March 2008.
  • Rs. 1,00,000
  • Rs. 1,40,000
  • Rs. 40,000
  • Rs. 1,20,000
X purchased a machinery on 01.04.2008 for Rs. 5,00,Depreciation is changed at WDV at the rate of 10% p.a. The written down value of the machinery for the year ending 31st march 2011 will be:
  • Rs. 4,50,000
  • Rs. 4,05,000
  • Rs. 3,54,500
  • Rs. 3,64,500
Depreciation is to be calculated from the date of _____________________.
  • Asset put to use
  • Purchase order of asset
  • Receipt of asset at business premise
  • Invoice of assets.
A machine is purchased for Rs 1,00,Installation charges of Rs. 10,000 were incurred. Depreciation @ 10% was provided on straight fine Bases. The machine was sold for Rs. 60,000 after 5 years. Calculate the profit or loss on sale of machine.
  • Rs. 5,000 loss
  • Rs. 5,000 Profit
  • Rs. 60,000 Profit
  • Rs. 40,000 Loss
Under the diminishing balance method, the amount of depreciation is calculated on __________________.
  • The written down value of the asset
  • The market value of asset
  • The original cost of the asset
  • The expected realisable value of the asset
'A' purchased a computer on 1.04.06 for Rs. 60,He purchased another computer on 1.10.07 for Rs. 40,He charges depreciation at 20% p.a. on the straight-line method. What will be the closing balance of the computer as on 31.3.09?
  • Rs. 40,000
  • Rs. 64,000
  • Rs. 52,000
  • Rs. 48,000
If the rate of depreciation is the same, then the amount of depreciation under straight line method as compare to written down value method will be:
  • Equal in all years
  • Equal in 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.
Asset purchase on 1st April 2012 at Rs.Calculate the amount of asset on 1st April 2017, depreciation @ 20% p.a. under the straight-line method.
  • Rs. 0
  • Rs. 20000
  • Rs. 40000
  • Rs. 50000
Asset purchase in 2008 at Rs.10000. The depreciation amount for 2 years @10% p.a under straight line method ____________.
  • Rs.1000
  • Rs.2000
  • Rs.1900
  • Rs.4000
An asset was purchased in 2010 at Rs.10000. Calculate the opening balance amount after 2years when depreciation is charged @10% p.a. under the straight line method.
  • Rs.8,000
  • Rs.8,100
  • Rs.9,000
  • Rs.10,000
Asset purchased on 1st September 2020 for Rs.15000. Calculate depreciation as on 31 March 2021 on the asset, rate of depreciation is 12% ____________.
  • Rs.1050
  • Rs.1075
  • Rs.1875
  • Rs.13125
On January 1, 1992, there was a balance of Rs. 4,000 in the plant and machinery account. An addition of Rs. 2,000 was made on July 1,Accounts were closed for the year on December 31,If depreciation was charged at 10% per annum, the balance in the plant and machinery account on the closing date would be:
  • Rs. 5,300
  • Rs. 5,400
  • Rs. 5,500
  • Rs. 5,600
The written down method is based on __________________ assumption of same amount.
  • Faulty
  • Realistic
  • Invalid
  • None of the above
An asset is purchased in 2020 at Rs.10,Calculate the book value of the asset after 2 years, when depreciation is charged @ 10% p.a. under the straight-line method.
  • Rs.8,100
  • Rs.8,000
  • Rs.9,000
  • Rs.8,570
An asset is subject to 10% depreciation on reducing balance method. If the book value of the asset as on 31.03.14 is Rs. 40500. The annual depreciation for the year 2013−14 amounted to __________.
  • Rs. 4,500
  • Rs. 4,050
  • Rs. 50,00
  • Rs. 48,00
XYZ purchased a plant having estimated useful life of 15 years, however after 5 year the remaining life of the asset is revised to 5 years. Rs. 40,000 being the remaining depreciable amount will be charged/allocated over ____________.
  • 5 years
  • 10 years
  • immediately
  • charged to revaluation a/c
___________ of depreciation takes into account interest on capital outlay.
  • Sum of digit method
  • Annuity method
  • Depletion method
  • Straight line method
The pattern of annual depreciation charge of an asset for the three years was Rs. 5000, Rs. 4500 and Rs. 4050. Discuss the rate of depreciation charge.
  • 15% on WDV
  • 15% on SLM
  • 10% on WDV
  • 90% on WDV
An asset is subject to 10% depreciation on reducing balance method. If the annual depreciation for the year 2013−14 amounts to Rs. 4500. The book value of the asset as on 31.03.14 will be ___________.
  • Rs. 45,000
  • Rs. 40,500
  • Rs. 50,000
  • Rs. 48,000
An asset is subject to 10% depreciation on reducing balance method. If the annual depreciation for the year 2013−14 amounts to Rs. 4500. The book value of the asset as on 01.04.13 will be __________.
  • Rs. 45,000
  • Rs. 40,500
  • Rs. 50,000
  • Rs. 48,000
An asset was shown in the Balance sheet during the last three years at Rs. 50000, Rs. 45000 and Rs. 40500. Find the depreciation for the 4th year ___________.
  • Rs. 4000
  • Rs. 5000
  • Rs. 4050
  • Rs. 4500
Which of the following is a true statement?
  • Under Income-tax Act reducing balance method of depreciation is allowed
  • Land is subject to depreciation at a very nominal rate
  • Depreciation is the process of valuation of the assets
  • Depreciation is a cash expense
Calculate the rate of depreciation under the Straight Line method from the following details.
Cost of acquisition of the Machine Rs. 140,000, Estimated scrap value at the end of 10 years Rs. 7,500, useful life of the Machine 10 years.
  • 9.83%
  • 10.55%
  • 9.87%
  • 9.46%
An asset is subject to 10% depreciation on reducing balance method. If the book value of the asset as on 31.03.13 is Rs. 45000. The Book value of the Asset as on 31.03.15 will be ___________.
  • Rs. 40,500
  • Rs. 36,450
  • Rs. 50,000
  • Rs. 48,000
Which of these is an example of accelerated method of depreciation.
  • Written down value method
  • Straight line method
  • Sinking fund method
  • Annuity method
Q.Ltd acquired machinery on 1st January 2011 at a cost of Rs72,000 and spent Rs8,000 for its installation. The firm writes off depreciation at 10% p.a on the original cost every year. The books are closed on 31st December every year. Closing balance of machinery for 1st & 2nd year as per fixed instalment method will be Rs............
  • 72,000,64,000
  • 74,000,66,600
  • 74,000,72,000
  • 74,000,66,000
Depreciable value of an asset is equal to _________.
  • Cost + Scrap value
  • Cost + Market price
  • Cost - Scrap value
  • None of them
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Practice Class 10 Elements Of Book Keeping And Accountancy Quiz Questions and Answers