Nitish Singh

9953532368

DEPRECIATION
Q1 Nitish purchase a machinery on 1st Jan 2010 for Rs 1, 50,000. The rate of depreciation charged @10% P.A by straight
line method. You are required to prepare machinery a/c for three year ended on 31 st Dec 2012

Q2 Nitish purchase a machinery on 1st Jan 2010 for Rs 1,50,000. The rate of depreciation charged @10% P.A by written
down method. You are required to prepare machinery a/c for three year ended on 31st Dec 2012

Q3 Radha purchase a truck on 1st April 2009 from Raman by paying cheque for Rs 1,00,000 and spend on installation
amounting Rs1,00,000. Provided depreciation @15% P.A. You are required to prepare truck a/c by original
cost method for three year.

Q4 Radha purchase a truck on 1st April 2009 from Raman by paying cheque for Rs 1,00,000 and spend on installation
amounting Rs1,00,000. Provided depreciation @15% P.A. You are required to prepare truck a/c by
Diminishing balance method for three year

Q5 Rohit purchase plant and machinery On 1st July 2010at the cost of Rs 1,40,000 and spend Rs 10,000 on installation .
Firm writes off depreciation @ 10% P.A of the original cost method. Book closed on 31 st Dec every year.
Show plant and machinery a/c for three year.

Q6 A firm purchase a plant for Rs 1,80,000 on 1st Jan 2008. Amount spend on Installation charges are 20,000. Its life was
estimated to be 5 year . Its breakup value at the end of the period was Rs 10,000. You are required to
prepare plant a/c for five year charging. Deprecation According to Fixed installation method.

Q7 On 1st 2002 Simi purchase machinery for Rs 52,000 and spend Rs 3,000 on its carriage and Rs 1,000 on erection. On
the date of purchase, it estimated that the effective life of the machinery will be 10 yeaRs and after 10 year
its scrap value will be Rs 6,000. Prepare machinery a/c and depreciation a/c for 4 year after providing depreciation
on fixed on installation method. Account are closed on 31st each year

Q8 On 1st April 2010 Rocky purchase machinery for Rs 93,000 it was estimated that life of the machinery will be 10 year
and its scrap value is Rs 3,000. On 1st Jan 2011 machinery purchase for Rs 30,000 and scrap value is Rs 5,000
and effective life of machinery is 15 year. On 1st Oct 2012 a new Machinery is purchased for Rs 12,000 of which
the scrap value is Rs 2,000 . Show the machinery a/c from 2010 to 2012. If depreciation is charged @10% P.A by
straight line method. The account is closed on 31st march every year.

Q9 On 1st Oct 2010 Naina purchase a Truck for Rs 4,00,000. On 1st april 2012 this truck involved in an accident and was
completely destroyed and Rs 3,00,000 were received by the from insurance company in full settlement. On
this same date another truck was purchased by the company for Rs 5,00,000. The write off @ 20% P.A Depreciation
on reduction method. Give truck a/c from 2010 to 2012 its assumed that book are closed on 31 st Dec every
year

Q10 Meenakshi Purchase Machinery on 1st April 2010 for Rs 80,000. On 30th June 2011 he purchase additional machinery
costing Rs 48,000. On 1 Jan 2012 machinery purchased on 1st April 2010 was sold for Rs 42,000 and on same
date new machinery was purchased for Rs 75,000. Depreciation is provided @ 10% P.A by diminishing balance
method every year. Show machinery a/c for three yeaRs and accounts are closed each year on 31st March

Q11 Naina purchase a second hand machinery on 1st Jan 2009 for Rs 23,000 and spent Rs 2,000 on its repairs. It decided to
depreciate the machinery @20% every year according to written down method. Prepare a machinery a/c
from 2009- 2011 and show profit and loss as it was sold on 31st Dec 2011 for Rs 10,800. The accounts are
st
closed on 31 Dec every year
Q12 Komal purchase and machinery plant on 1st April 2008 for Rs 2,00,000 another Plant and machinery was purchased
on 31st Dec 2008 for Rs1,00,000. On 30th Sep 2009 new plant and machinery was purchased for Rs 5,00,000
and half amount is paid only. On 1 Jan 2010 plant purchased on 1st April 2008 was sold for Rs
1,20,000 on same date another machinery was purchased for Rs 2,50,000. On 1st July 2012 fire occur in
st
company plant purchase on 31 Dec 2008 loss by fire only Rs 50,000 is recover by insurance company. On 1st Oct
2012 another Plant purchase for Rs 3,00,000. Provide depreciation @10% P.A by reduction installment method
and year ended on 31st March every year. Prepare Plant and machinery account from 2008-2013.

Q13 A company had brought machinery for Rs 3,00,000 Including a boiler worth Rs 30,000. The Machinery has been
credited for depreciation on the diminishing method for the past four years @ of 10% P.A. During the fifth
year, i.e the present year boiler becomes useless on account of damage to some of its vital parts and the damaged
boiler is sold for Rs 6,000. Another machinery purchase on same date for Rs 1,50,000.Prepare Machinery a/c for 5
year

Q14 A company purchased on 1st April 2010 machinery costing Rs 30,000. It further purchased machinery on 1 st Oct 2010
costing Rs 20,000 and on 1st July 2011 costing Rs 10,000. On 1st Jan 2012 one third of the machinery which
was installed on 1st April 2010 become obsolete and sold for Rs 3,000. Prepare machinery account an book
st
closed on 31 Dec every year. Charges depreciation @ of 10% P.A. By W.D.M.

Q15 Pooja purchase second hand machinery on 1st Jan 2008 for Rs 37,000 and immediately spent Rs 2,000 on its repair
and Rs 1,000 on its refection.On 1st July 2009 he purchased another machine for Rs 10,000. On 1st July 2010
sold of first machinery for Rs 25,000 andbrought another machinery for Rs 30,000. Depreciation is charged @ 10%
P.A. on the original cost method on 31st Dec every year .Prepare Machinery account

Q16 On 1st Jan 2006 M/s Atul and bros purchased 5 washing machinery for Rs 15,000 each. They sold on Jan 1 2007 one
machinery for Rs 12,500. They decided to write off depreciation @10% P.A. on the straight line method.
Prepare Washing Machinery account and Provision for depreciation account for two year . Accounts are closed on
31st Dec every year

Q17 On April 1, 2010 Henna purchased a machinery for Rs 12 00,000. On 1st Oct 2011 a part of machinery purchased on 1st
April 2010 for Rs 80,000 was sold for Rs 45,000 and new machinery at cost of Rs 1,58,000 was purchased and installed
on same date. Provide depreciation @10% P.A. on the diminishing balance method.
Shows the necessary ledger accounts assuming that
1 Provision for depreciation account not maintain
2 Provision for depreciation account maintain
The accounting year ends on 31st March