A machine was purchased for Rs.50,000. Installation expenses amounted to Rs.2,000 wages of Rs.4,000 were paid on installation. The scrap value at the end of its useful life of 10 years is Rs.6,000. Repairs of Rs.6,000 was made after 6 months from the date of purchase. Calculate depreciation

Which method of depreciation is suitable when expenditure on repairs and maintenance, increase as the machine grows old ?

A machinery is purchased for Rs.10,000. On 1st April, 2005. Depreciation @ 10% p.a. is provided. Calculate the amount of difference in depreciation as per SLM and WDV basis in the year 2006-07.

A mine was taken on lease for Rs.2,00,00,000. Its total production capacity is 4,00,000 mt. What will be the depreciation in 2007 if it produced 30,000 m.t. in 2007 ?

A machine is purchased for Rs.1,00,000. Installation charges of Rs.10,000 were incurred. Depreciation @ 10% was provided on Straight Line Basis. The machine was sold for Rs.60,000 after 5 years. Calculate the profit or loss on sale of machine.

Depletion method of depreciation is normally applied in case of ______ assets.

___ method of depreciation takes into account the element of interest on capital outlay and seeks to write off the value of the asset as well as the interest lost over the life of the asset :

If the rate of depreciation is same then the amount of depreciation under Straight Line Method vis-a-vis Written Down Value Method will be :

Vijay Traders purchased car on 1.4.08 for Rs.3,00,000. They are charging depreciation on Written Down Value Method. On 31.3.09 they sold the car for Rs.1,65,000 and incurred a loss of Rs.75,000. The rate of depreciation p.a. is :

‘A’ purchased a computer on 1.4.08 for Rs.60,000. He purchased another computer on 1.10.07 for Rs.40,000. He charges depreciation @ 20% p.a. on straight line method. What will be closing balance of computers as on 31.3.09 ?

Depreciation is to be calculated from the date of :

According to the Income Tax Act, which method of charging depreciation is provided ?

Which method of depreciation is effective if repairs and maintenance cost of an asset increases as it grows old :

Original cost of an asset is Rs.1 lakh, WDV = Rs.40,000, sold for Rs.90,000. What will be the profit on its sale ?

A machine was bought at a cost of Rs.5 lakhs 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.50,000. Find out the profit/loss ?

X purchased a machinery on 01.04.2008 for Rs.5,00,000. Depreciation is charged 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 :

In case of reducing balance method of charging depreciation, depreciation is charged on the :

A machine was acquired on April 1, 2010 at a cost of Rs.14,400 and expenses of installation were Rs.1,600. It is expected that its total useful life will be 8,000 hours.

During the year 2010-11 it worked for 2,500 hours. The depreciation for the year ending 31st March 2011 will be :

A machine was purchased at a cost of Rs.5,30,000. Depreciation was charged at 10 % p.a. instead of 25 % p.a. What would be the rectification entry to correct this error ?

Rate of depreciation under written down value method is 15% p.a. Cost of the machinery is Rs.10,00,000. Residual value at the end of useful life is Rs.20,000. Depreciation for the first year will be –

Following data pertaining to B limited are available :

Cost of second hand plant Rs.1,80,000

Cost of repairing the plant Rs.20,000

Wages paid for installation of the plant Rs.5,000

Fire insurance premium paid for the plant Rs.2,000

The amount to be debited to plant account will be :

Estimated useful life of a machinery is 5 years. Depreciation written off in second year under sum of years digit method would be :

A company purchased a machine on 1/4/00 at Rs.3,10,000. Its working life is estimated to be 15 years and the residual value is estimated as Rs.10,000. The company charged depreciation on straight line basis till 31/3/10. On 1/4/10, the technology expert recommend that the asset may be used for another 10 years. Residual value of the machine remains unchanged. What would be the amount of annual depreciation from the accounting year 2010-11 following the relevant accounting standard.

Cost of the machinery is Rs.60,000. They charge depreciation @ 20% on SLM method. In 2nd year, they decided to change the method, and adopt WDV method @ 20%. If the machine was sold for Rs.30,000 at the end of the third year, calculate the amount of loss on the sale of machinery.

A machine purchased for Rs.5,00,000 has an estimated working life of 10,000 hours, scrap value estimated Rs.1,00,000. Their anticipated pattern of working hours as follows :

Year            Hours (p.a.)

1-2                 1500

3-6                 1000

7-10                  750

Depreciation for the third year would be :

ABC printers purchased a machine for Rs.1,00,000, on 1st April, 2010. On 1st October, 2010 an another machine of Rs.50,000 was purchased. Depreciation was provided annually 10 % p.a. by fixed installment method. Find out the balance of machine account on 31st March 2012

If depreciation rate is equal, the amount of depreciation in SLM method as compared to WV method will be _____

Where a machine produces products of uniform size, the ___ of depreciation is applied :

A depreciable asset may suffer obsolescence due to :

______ method shall be efficient, if repairs and maintenance cost of an asset increases as it grows older :