Depreciation
Commerce ⇒ Accountancy
Depreciation starts at 11 and continues till grade 12.
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See sample questions for grade 12
A company purchased a machine for Rs. 1,20,000 on 1st April 2021. Depreciation is to be charged at 15% per annum under the Written Down Value Method. Calculate the book value of the machine at the end of the second year.
A company purchased a machine for Rs. 50,000. The rate of depreciation is 10% per annum under the Written Down Value Method. Calculate the depreciation for the second year.
A company purchased a vehicle for Rs. 5,00,000. The estimated useful life is 5 years and the residual value is Rs. 50,000. Calculate the annual depreciation using the Straight Line Method.
A company purchased equipment for Rs. 2,00,000. The estimated useful life is 5 years and the residual value is Rs. 20,000. Calculate the rate of depreciation under the Straight Line Method.
A machine costing Rs. 1,00,000 has a useful life of 10 years and an estimated residual value of Rs. 10,000. Calculate the annual depreciation using the Straight Line Method.
Define depreciation in the context of accountancy.
Explain the difference between Straight Line Method and Written Down Value Method of depreciation.
Explain the impact of not charging depreciation on the financial statements.
Explain the term 'residual value' in relation to depreciation.
If an asset is purchased on 1st October, depreciation for the first year should be charged for how many months?
If the rate of depreciation is 20% per annum under the Written Down Value Method, what will be the depreciation for the first year on an asset costing Rs. 40,000?
Name any two methods of providing depreciation.
State any one objective of providing depreciation.
State any one similarity between depreciation and depletion.
State any two factors affecting the amount of depreciation.
State the journal entry for charging depreciation on machinery.
What is meant by 'obsolescence' as a cause of depreciation?
What is the effect of charging depreciation on the profit of a business?
What is the formula for calculating depreciation under the Straight Line Method?
What is the main difference between depreciation and amortization?
