Advertisements
Advertisements
Question
Under straight-line method, the amount of depreciation is ______.
Options
Increasing every year
Decreasing every year
Constant for all the years
Fluctuating every year
Solution
Under straight-line method, the amount of depreciation is constant for all the years.
APPEARS IN
RELATED QUESTIONS
Write the word/term/phrase which can substitute the following statement:
The method of depreciation in which the rate of depreciation is fixed but the amount of depreciation reduces every year.
State whether the following statement is True or False with reasons:
Wages paid for installation of Machinery are debited to Wages A/c.
Complete the following sentence:
Wages paid for Installation/fixation of Machinery is debited to ______ account.
Complete the following sentence:
Depreciation Account is a ______ account.
For which of the following assets, the depletion method is adopted for writing off cost of the asset?
Which method shall be efficient, if repairs and maintenance cost of an asset increases as it grows older.
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.
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.
On 1st April 2015, Farid of Nasik purchased a Motor Car for ₹ 55,000. The scrap value of the Motor Car was estimated at ₹ 10,000 and its estimated life is 10 years. The Registration charge for the Motor Car was ₹ 5,000.
Show Motor Car Account for first four years, assuming that the books of accounts are closed on 31st March every year.
Vishal Company, Dhule, purchased Machinery costing ₹ 60,000 on 1st April 2016. They purchased further Machinery on 1st October 2017, costing ₹ 30,000, and on 1st July 2018, costing ₹ 20,000. On 1st Jan 2019, one-third of the Machinery, which was purchased on 1st April 2016, became obsolete and it was sold for ₹ 18,000.
Assume that, company account closes on 31st March every year.
Show Machinery Account for the first three(3) years and pass journal entries for the Third year, after charging depreciation at 10% p.a. on Written Down Value Method.
