Depreciation Provisions And Reserves CBSE Questions & Answers

Under what situations does a business invest the fund outside

Following are the disadvantages of secret reserves except

Match the following. Options are

A company purchased a vehicle for Rs.6000. That will be used for 5 years and its residual value is expected to be Rs.1000. What will be the annual amount of deprecation using straight line method?

A fixed asset was bought for Rs.5000. Its accumulated depreciation is Rs.3000 and rate of depreciation is 20%. Calculate its depreciation expenses for the current accounting period using reducing balance method?

A car was purchased for Rs.5500. Its residual value was estimated to be Rs.500 while its monthly depreciation expenses are Rs.100 using straight line method. Which of the following is the annual rate of depreciation?

A fixed asset having book value of Rs.2000 was sold for Rs.1500. Find out gain or loss.

A business bought a plant at a cost of Rs.20000, with an estimated life of 5 years and an estimated residual value of Rs. 2000, the annual depreciation on this asset will be

An asset was bought for Rs.40000 on 1-1-1988. It was decided to charge the depreciation on this asset @ 10% under reducing balance method. The depreciation on this asset will be:

Shyam Ltd. purchased machinery on 1stMay, 2009 for Rs.60000. On 1stJuly, 2010 it purchased another machine for Rs. 20000. On 31st March, 2011, it sold the first machine purchased in 2009 for Rs. 38500. Depreciation provided @ 20% p.a. on the original cost every year. Accounts are closed 31st December every year. Calculate profit on machine

The original cost of the asset is Rs.250000.The useful life of the asset is 10 years and net residual value is estimated to be Rs.50000. Now, the amount of depreciation to be charged every year will be

M/s Singh purchased a plant for Rs. 500000 on April, 01 2002, and spent Rs.50000 for its installation. The salvage value of the plant after its useful life of 10 years is estimated to be Rs.10000.Calculate amount of depreciation as depreciation is charged using straight line method

M/s Mohit and Sons acquired a machine for Rs.180000 on October 01, 2012, and spent Rs.20000 for its installation. The firm writes-off depreciation at the rate of 10% on original cost every year. Record necessary journal entries for the year 2012 for the expenses incurred on installation

A machine purchased for Rs.1,00,000 on November 01, 2004, having accumulated depreciation amounting to Rs.60,000 was sold on April 1, 2009 for Rs.35,000. The Asset Disposal account will be prepared. Calculate the amount of loss on sale

Original cost of a machinery is Rs.500000, salvage value is Rs.20000. Expected useful life is 10 years. What will be the amount of depreciation for the fourth year according to original cost method