Samacheer Kalvi solutions for Accountancy [English] Class 11 TN Board chapter 10 - Depreciation Accounting [Latest edition]

Under straight-line method, the amount of depreciation is ______.

If the total charge of depreciation and maintenance cost are considered, the method that provides a uniform charge is ______.

Under the written-down value method of depreciation, the amount of depreciation is ______.

Depreciation is caused by

For which of the following assets, the depletion method is adopted for writing off cost of the asset?

A depreciable asset may suffer obsolescence due to ______.

Which method shall be efficient, if repairs and maintenance cost of an asset increases as it grows older.

Residual value of an asset means the amount that it can fetch on sale at the ______ of its useful life.

Depreciation is to be calculated from the date when ______.

If the rate of depreciation is the same, then the amount of depreciation under straight-line method vis-à-vis written down value method will be ______.

What is meant by depreciation?

List out the various methods of depreciation.

Give the formula to find out the amount and rate of depreciation under straight line method of depreciation.

What is the annuity method?

What is sinking fund method?

What are the objectives of providing depreciation?

What are the causes for depreciation?

State the advantages of straight-line method of depreciation.

State the limitations of straight-line method of depreciation.

State the advantages of written down value method of depreciation.

State the limitations of written down value method of depreciation.

Distinguish between straight-line method and written down value method of providing depreciation.

A firm purchased a plant for ₹ 40,000. Erection charges amounted to ₹ 2,000. The effective life of the plant is 5 years. Calculate the amount of depreciation per year under the straight-line method.

A company purchased a building for ₹ 50,000. The useful life of the building is 10 years and the residual value is ₹ 5,000. Find out the amount and rate of depreciation under the straight-line method.

Furniture was purchased for ₹ 1,00,000 on 1.7.2016. It is expected to last for 5 years. Estimated scrap at the end of five years is ₹ 10,000. Find out the rate of depreciation under the straight-line method.

Calculate the rate of depreciation under straight-line method from the following information:

Purchased second-hand machinery on 1.1.2018 for ₹ 38,000
On 1.1.2018 spent ₹ 12,000 on its repairs
Expected useful life of the machine is 4 years
Estimated residual value ₹ 6,000.

Machinery was purchased on 1st January 2015 for ₹ 4,00,000. ₹ 15,000 was spent on its erection and ₹ 10,000 on its freight charges. Depreciation is charged at 10% per annum on the straight-line method. The books are closed on 31st March each year. Calculate the amount of depreciation on machinery for the first two years.

An asset is purchased on 1.1.2016 for ₹ 50,000. Depreciation is to be provided annually according to the straight-line method. The useful life of the asset is 10 years and its residual value is ₹ 10,000. Accounts are closed on 31st December every year. You are required to find out the rate of depreciation and give journal entries for first two years.

From the following particulars, give journal entries for 2 years and prepare machinery account under straight-line method of providing depreciation:

Machinery was purchased on 1.1.2016
Price of the machine ₹ 36,000
Freight charges ₹ 2,500
Installation charges ₹ 1,500
Life of the machine 5 years

A manufacturing company purchased on 1^st April 2010, a plant and machinery for ₹ 4,50,000 and spent ₹ 50,000 on its installation. After having used it for three years, it was sold for ₹ 3,85,000. Depreciation is to be provided every year at the rate of 15% per annum on the fixed installment method. Accounts are closed on 31^st March every year. Calculate profit or loss on sale of machinery.

On 1st April 2008, Sudha and Company purchased machinery for ₹ 64,000. To instal the machinery expenses incurred was ₹ 28,000. Depreciate machinery 10% p.a. under straight-line method. On 30th June, 2010 the worn out machinery was sold for ₹ 52,000. The books are closed on 31st December every year. Show machinery account.

Ragul purchased machinery on April 1, 2014 for ₹ 2,00,000. On 1st October 2015, a new machine costing ₹ 1,20,000 was purchased. On 30th September 2016, the machinery purchased on April 1, 2014 was sold for ₹ 1,20,000. Books of accounts are closed on 31st March and depreciation is to be provided at 10% p.a. on straight line method. Prepare machinery account and depreciation account for the years 2014-15 to 2016-17.

An asset is purchased for ₹ 50,000. The rate of depreciation is 15% p.a. Calculate the annual depreciation for the first two years under the diminishing balance method.

A boiler was purchased on 1^st January 2015 from abroad for ₹ 10,000. Shipping and forwarding charges amounted to 12,000. Import duty ₹ 7,000 and expenses of installation amounted to ₹ 1,000. Calculate depreciation for the first 3 years @10% p.a. on diminishing balance method assuming that the accounts are dosed 31^st December each year.

Furniture costing ₹ 5,000 was purchased on 1.1.2016, the installation charges being ₹ 1,000. The furniture is to be depreciated @ 10% p.a. on the diminishing balance method. Pass journal entries for the first two years.

A firm acquired a machine on 1^st April 2015 at a cost of ₹ 50,000. Its life is 6 years. The firm writes off depreciation @ 30% p.a. on the diminishing balance method. The firm closes its books on 31^st December every year. Show the machinery account and depreciation account for three years starting from 1^st April 2015.

On 1^st October 2014, a truck was purchased for ₹ 8,00,000 by Laxmi Transports Ltd. Depreciation was provided @ 15% p.a. under diminishing balance method. On 31^st March 2017, the above truck was sold for ₹ 5,00,000. Accounts are closed on 31^st March every year. Find out the profit or loss made on the sale of the truck.

Raj & Co purchased a machine on 1^st January 2014 for ₹ 90,000. On 1st July 2014, they purchased another machine for ₹ 60,000. On 1st January 2015, they sold the machine purchased on 1st January 2014 for ₹ 40,000. It was decided that the machine be depreciated at 10% per annum on the diminishing balance method. Accounts are closed on 31st December every year. Show the machinery account for the years 2014 and 2015.