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Sample Question On Depreciation

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Published in: Accountancy
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There are few questions on Depreciation for Class 11th for Commerce students.

Siddhant S / Bhopal

8 years of teaching experience

Qualification: CS (INSTITUTE OF COMPANY SECRETARIES OF INDIA - 2014), B.Com (INSTITUTE FOR EXCELLENCE IN HIGHER EDUCATION - 2012), LLB (Rajeev Gandhi - 2018)

Teaches: CA - CPT, CA Foundation, CS - Foundation, Accountancy, Business Studies, Commerce Subjects, Economics, B.Com Tuition, BBA Subjects, Management Subjects

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  1. CLASS-XI ACCOUNTANCY DEPRECIATION Q 1. ABC Ltd. purchased a second-hand Machinery on 1st January, 2003 for ERs. and spent Rs.6å500 on its erection. Show the Machinery Account and Depreciation Account for three years, if the accounts are closed on 31st March every year. The depreciation is to be charged @ 15% p.a. on Original Cost Method, Q2. Jai Ltd. purchased a Machine on 1st January, 2000 for It purchased additional machinery for on 30th June, 2002 Depreciation is to be charged @ 10% per annum on Written Down Value Method* Assuming that the accounts are closed on 31st December every year, prepare Machinery Account for 4 years. Q3, PLJ Ltd. purchased a Machinery on 1st April, 2006 for Rs.65,000 whose life was expected to be 10 years. Its estimated scrap value at the end of 10 years was Rs.6,500. Find the amount of depreciation to be charged to Profit and Loss Account every year. Also calculate the rate on which depreciation is to be charged every year. Q4. Batra Ltd. purchases a machine at a cost of Rsa 1+50,000 on 1>1.2001. It was decided to charge depreciation @ 20% p.a. on written down value method. Calculate the amount of depreciation to be charged for 4 years. Q5, A Machinery was purchased by XYZ Industries Ltd. for Rs.3335,000 on 1st July, 2001. The Machinery is depreciated @ 10% p.a. on Straight Line Method. The Machinery was sold on 1st October, 2003 for Rs.l You are required to prepare Machinery Account, if the books are closed on 31st March every year. Q6. Hind Ltd. purchased a Machine worth on 1st January, 2000. On 1st January, 2002 it purchased a new Machine for Rs.175,000 and spent Rs.9,500 towards its carriage and installation. On 1st January, 2003 it purchased another machine for The Machine purchased on 1st January, 2002 was sold off on 31st March, 2004 for Depreciation is charged @ 10% per annum on Straight Line Method. Prepare Plant and Machinery Account for 5 years, assuming that the books are closed on 31st March every year. Q7. M/S Manoj Bros. purchased a Machinery for Rs.l on 1st January, 2001. The life of the
  2. Machine was estimated to be 10 years with a residual value of Rs.7,000. On 1st July, 2002 another Machinery was purchased worth Rs.2,107000 with an estimated life of 9 year having a residual value of Rs.30,000. On 1st October, 2003 another Machinery was purchased for on which Rs.10,000 were spent for its erection. The life of this Machine was expected to be 5 years, residual value being Rs.20,OOO. Depreciation was to be charged on Straight Line Method on 31 st December every year. Show Machinery Account for first four years. Q8. M/S Ram Rahim Ltd. purchased a machine for on 1st Jan., 2002. On 1st July, 2003, it had purchased another machine for Rs.l On 30th June, 2004, the machine which was purchased on 1st January, 2002 was sold for Rs.85,500 and on 1st July, 2004* it had purchased another machine for Re The company had charged depreciation @ 10%, @15% and @20% p.a. on Straight Line Method on Machines l, li and Il} respectivefy. Show Machinery Account from the year 2002 to 2004, assuming that the accounts are closed on 31st December every year. QC Anu Ltd. purchased a Machinery worth Rs.76,500 on 1st January, 2001. Additional machines were purchased on 1st July, 2002 worth Rs.55,000 and on 1st October, 2002 for Rs.25f500. On 1st January, 2003 part of machine (purchased on 1st January, 2001 became useless and was sold for Rs.15,500 (Original cost Rs. 30,000). Depreciation is charged @ 20% per annum by Fixed Installment Method- Show the Machinery Account for first 3 years, assurning that the accounts were closed on 31st December every year. Q 10. On 1st Apritl 2001 Madhavan Limited, purchased ten machines of Rs.8,000 each* On 30th June 2002, one machine out of the ten machines purchased on 1st April. 2001, was sold for Rs.l ,550 and on 31st December, 2003, one more machine was sold for Rs.2,000. A new machine was purchased on 30th September 2004 for Rs.3,400. The company has adopted the practice of providing depreciation at p.a. on original cost of machines. The company closes its books on 31st March every year. You are required to prepare Machinery Account. QI 1 . On 1st Jufy, 2001. Haryana Traders purchased a machine for Rs.29,500 and spent Rs.l ,500 towards its erection. On 1st April* 2003, the machine was disposed off for Rs.26,100. Show the
  3. Machinery Account, if the rate of depreciation is 10% by Reducing Baiance Method. The books are closed on 31st December every year, Q 12. A Machinery was purchased for Rs.l on 1st April, 2001. Depreciation was charged annually @ 10% on Diminishing Balance Method. 114th of this Machinery was sold on 1st Jul% 2003 for Rs.17,000. Prepare Machinery Account from 2001 to 2003, if the books are closed on 31st December every year. QI Mehta Ltd. purchased a Machinery for Rs.l on 1st July, 2001. A part of Machinery purchased for Rs.14,100 on 1st July, 2001 became obsolete and was disposed off for Rs.l ,590 on 1st Octobers 2003. Depreciation is charged @ 10% annually on written down value. Show Machinery Account for first four years. The books being ctosed on 31st December every year. Q 14. On 1st July, 2002, Sunshine company purchased two machines of Rs.26,000 each. On 1st January, 2003 and 1st April, 2003 it purchased additional machines for Rs.9,000 and Rs.4,000 respectively* On ist October, 2004 one half of the machine purchased on 1st July, 2002 became obsolete and was sold for Rs.10,000. Depreciation was provided written @ 15% p.a. on written down value method on 31 st December every year. You are required to prepare Machinery Account till 31.122004. Q 15. Akbar Ltd. purchased a Machine worth Rs, on 1st January, 2001. On 1st January, 2002 it purchased a new Machine for Rs. 1 , 751000 and spent Rs. 9,000 towards its carriage and installation. On 1st January, 2003 it purchased another machine for Rs. 95,000. On 31st March, 2004, the Machine purchased on 1st January, 2002 was sold off for Rs. Depreciation is charged @ 10% per annum on Straight Line Method, Prepare Machinery Account till 31st Marchl 2005 and Machinery Sold Account. The books are closed on 31 st March every year. Q16. Shri Hanumant Ltd. purchased a machine for Rs.65,000 on 1st January, 2003. Another machine was purchased on 1st July, 2003 for Rs.9,550. On 1st January, 2004, the first machine was sold for Rs.14,500. Depreciation has been charged @ 15% on original cost to Profit and Loss Account and credited to Depreciation Provision Account. Show: (a) (b) Machinery Account Provision for Depreciation Account
  4. (c) Machinery Disposal Account Q 17. On 1st January, 2002 Chand Lal & Co. purchased four machines for Rs.52,000 each. On 1 Jan., 2003, one machinery (out of the four machines which were purchased on January 1, 2002) was sod for Rs. 27,600. A new machine at a cost of Rs.50,000 was purchased on 1 July, 2003. On 1st January, 2004 one more machinery was sold for Rs.25,500. Depreciation at the rate of 10% on originat cost of machines has been provided and accumulated on 'Depreciation Provision Account'. The company closes its books on 31st December every year. You are required to show of Machinery A/c, Depreciation Provision NC and Machinery Disposal A/c. Q18. On I *4.2004, following balances appeared in the books on M/S Bakshi & Company : Pfant and Machinery A/c Rs.52,000; Depreciation Provision A/c Rs. 19,500. On 1.10.2004 a part of Machinery purchased for Rs.6,400 on 1Å.2002 was sold for Rs.2,900. On the same date, a new Machinery costing Rs.21 *900 was purchased. The depreciation was provided @10% pa. on original cost of the asset, Prepare Plant and Machinery Account, Machinery Disposal Account and Depreciation Provision Account for the year ending 31.3.2005. Q 19. On 1st January, 2001 Vishwash Ltd. purchased a machine for Rsal 135,000 On 1st April, 2002 another machine was purchased for Rs.46,000. On 1st July, 2002 the Machine purchased on 1st January, 2001 was sold for Rs.55,000. On 1st September, 2003 a new machine was purchased for Rs.96,500. On 1st July, 2004 the machine purchased on 1st April, 2002 was sold for Rs.12,500. Depreciation is to be charged @ 15% per annum on Diminishing Balance Method. The books are closed on 31st December every year. You are required to show the following accounts for the four accounting years ending 31st December, 2004: (a) Machinery Account
  5. (b) (c) Machinery Disposal Account Provision for Depreciation Account Q20. On 1st July, 2002 Agra & Company purchased two machines of Rs. 65,000 each. On 1st April, 2003 a new machine for Rs. 30,000 was purchased. On 1st October, 2004 one of the machines, purchased on 1st July, 2002 became obsolete and was sold for Rs. 21 ,500. Depreciation is written off @ 15% p.a. on written down value method on 31st December every year. You are required to prepare Machinery Account and Provision for Depreciation Account for the years 2002, 2003 and 2004. Also prepare Machinery Sold Account showing gain or toss on sale of machine.
  6. N/A

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