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14 views1 page

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Math

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iamsandeepgaur295
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INSPIRE ACADEMY

Class - 11th Accounts( Test ). MM - 25


Ch - Depreciation

Q.1. A rm purchased machinery at a cost of ₹46000 on 1st October, 2011 and incurred
₹4000 as expenses on its purchase and installation. The rate of depreciation under
straight line method is 10% p.a. The rm closes its books on 31st December, each year.
On 1st July, 2012, another machine worth ₹20000 was purchased. Prepare Machinery
account for 2011, 2012 and 2013.(3)

Q.2. A limited company purchased on 1st January 2010 a small plant for ₹10000. On 1st
July, in the same year additional plant was purchased costing ₹5000. On 1st July, 2011,
the plant purchased on 1st January 2010 having become obsolete is sold o for ₹4000.
On 1st July 2012, a fresh plant was purchased for 12000 and the plant purchased on 1st
July, 2011 was sold for 4200. Depreciation is provided at 10% p.a. on SLM every year.
Show Machinery Account for 3 years.(5)

Q.3. On 1st January 2011, X Ltd. purchased a machinery for 60000. On 1st July, 2011 an
additional machinery costing 20000 was purchased. On 1st July, 2003, the machine
purchased on 1.1.2011 was sold for 28600 and on the same date, a new machine was
purchased at a cost of ₹40000. Show the Machinery account for the rst four years
according to Diminishing Balance method, rate of depreciation 10% р.а.(4)

Q.4. You are given the following balances as on 1.4.2005


Machinery account. ₹50,000
Provision for depreciation account. ₹11600 Depreciation is charged on machinery @
20% p.a. by WDV Method. A piece of machinery purchased on 1.4.2003 for ₹10000 was
sold on 1st October, 2005 for 6000. Prepare Machinery account, Provision for
Depreciation Account and Machinery Disposal account for the year ended 31.3.2006.(4)

Q.5. On 1.1.2008, Kiran purchased 5 machines for ₹15000 each. They sold on 1.1.2009
one machine for 12500. They decided to write o depreciation @10% on the straight line
method. Prepare Machine account, provision for depreciation account and machine
disposal account for two years assuming that accounts are closed on 31st December
every year.(4)

Q.6. On 1.4.2011, XYZ Ltd. purchased a second hand machine for 80000 and spent
20000 on its cartage, repairs and installation. The residual value at the end of its expected
useful life of 4 years is estimated at 40000. On 30th Sept. 2012, repairs and renewals
amounted to ₹2000. On 30th Sept. 2013, this machine is sold for ₹50000. Depreciation is
to be provided according to straight line method. Prepare Machinery account and
Provision for Depreciation A/c for rst three years assuming that the accounts are closed
on 31st March each year.(5)
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