online exam in Depreciation Accounting for preparation of professional exams of CA cpt, CA foundation, CS foundation, CMA foundation , And Also for B.com, M.com, MBA
Depreciation Accounting-Test 2
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Subject :Fundamentals of Accounting Questions: 30
Chapter:Depreciation Accounting -Test 2
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Depreciation for the 1st year under sum of year’s digit method will be :
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Question 2 of 30
2. Question
1 points
Under annuity method, the amount of depreciation is :
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Question 3 of 30
3. Question
1 points
An asset was purchased for Rs.12,500 and was depreciated under Reducing Balance Method at the rate of 20% p.a. What is the value of the asset at the end of three years ?
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Question 4 of 30
4. Question
1 points
The main objective of providing depreciation is to :
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Question 5 of 30
5. Question
1 points
Original cost of an asset Rs.2,52,000. Salvage value Rs.12,000 Depreciation for 2nd year @ 10% p.a. under W.D.V. method will be :
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Question 6 of 30
6. Question
1 points
Useful life of an asset can be described as :
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Question 7 of 30
7. Question
1 points
Amortization refers to writing off :
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Question 8 of 30
8. Question
1 points
The W.D.V. of an asset after three years of depreciation on the reducing balance method @ 10% p.a. is Rs.36,450. What was its original value ?
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Question 9 of 30
9. Question
1 points
The cost of a machine having a span of life of 5 years is Rs.1,00,000 with a scrap value of Rs.10,000. The amount of depreciation under sum of years digit method for the second year will be :
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Question 10 of 30
10. Question
1 points
Which method of depreciation takes into account the element of Interest on Capital outlay :
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Question 11 of 30
11. Question
1 points
Under which schedule is the depreciation rate mentioned ?
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Question 12 of 30
12. Question
1 points
Cost of an asset Rs.75,000. Useful life is 4 years. Find out the depreciation for the 1st year under sum of years digit method :
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Question 13 of 30
13. Question
1 points
On 1st January, 2006 A Ltd. purchased a machine for Rs.50,000 and spent Rs.4,000 on its carriage and Rs.2,000 on its installation. Its useful life is 10 years and scrap value is Rs.6,000. Depreciation for the year under fixed installment method will be :
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Question 14 of 30
14. Question
1 points
Scrap value of an asset means the amount that it can fetch on sale at the ______ of its useful life :
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Question 15 of 30
15. Question
1 points
A machine of Rs.3,000 was sold for Rs.4,200. Depreciation provision to date was Rs.400 and commission paid to selling agent was Rs.420 and wages paid to workers for removing the machine was Rs.30. Profit on sale of machine will be :
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Question 16 of 30
16. Question
1 points
Under Annuity method Asset A/c is debited by :
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Question 17 of 30
17. Question
1 points
Depreciation is the process of :
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Question 18 of 30
18. Question
1 points
Original cost = Rs.1,26,000
Salvage Value = Rs.6,000
Useful life = 6 year
What will be the book value of the asset as at the beginning of fourth year : (Under sum of year’s digits method)
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Question 19 of 30
19. Question
1 points
Obsolescence means decline in the value due to :
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Question 20 of 30
20. Question
1 points
Annuity method is designed for which of the following :
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Question 21 of 30
21. Question
1 points
Cost of a machine = Rs.1,12,500
Salvage value = Rs.10,500
Useful life = 5 years
Depreciation for the last year using the sum of digits method will be :
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Question 22 of 30
22. Question
1 points
Depreciation starts on a machine from the date :
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Question 23 of 30
23. Question
1 points
A trader purchased a machinery for Rs.10,000 in Jan 2004. Depreciation is charged @ 25% diminishing balance. At the end of third year it was sold for Rs.1,000. Profit or Loss on sale of machine will be :
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Question 24 of 30
24. Question
1 points
Cost of machinery Rs.2,52,000
Salvage value Rs. 12,000
useful life 6 years
Annual depreciation under straight line method will be :
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Question 25 of 30
25. Question
1 points
Which of the following is Depleted ?
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Question 26 of 30
26. Question
1 points
A machine was purchased on 1st April, 2007 for Rs.5,00,000 and 1st October, 2007 for Rs.2,00,000. Calculate depreciation @ 20% p.a. on written down value method for the year ending 31st March, 2008.
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Question 27 of 30
27. Question
1 points
A machinery is depreciated by Rs.2,000 every year. Which method is being used to calculate depreciation ?
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Question 28 of 30
28. Question
1 points
A purchased a mine for Rs.2,50,000 minerals in the mine were expected to be 5,00,000 tonnes. In the first year, 50,000 tonnes of minerals were used. What is the depreciation for the first year ?
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Question 29 of 30
29. Question
1 points
Original cost = Rs.1,00,000, Life = 5 years. Expected salvage value = Rs.2,000. Rate of depreciation p.a. = ?