Depreciation Te...

Interest debited to asset account in which method of depreciation?

An asset was purchased for Rs. $$12,500$$ and under the reducing balance method $$20$$ percent of the reducing value of the asset is written off each year. What is the value of the asset at the end of three years?

Consider a piece of machinery costing Rs. $$30,000$$ with an estimated life of 10 years. At the end of this time it can be sold for Rs. $$3,000$$. Using the equal installment method the annual charge against profits would be ________.

Which of the following is/are advantage(s) of the equal installment method?
1. Easy to understand; calculation simple;
2. Decreasing depreciation charges cancel out increasing repair charges;
3. No re-calculation necessary when further assets are purchase.

The amount of depreciation remains constant year after year under ____________.

Original cost of a machine was Rs. $$2,52,000$$; Salvage value was $$12,000$$. Useful Life was 6 years, Annual depreciation under Straight Line Method will be __________.

The portion of the acquisition cost of the asset, yet to be allocated is known as ___________.

A Company purchased a machinery on April 01, 2000 for Rs $$1,50,000$$. It is estimated that the machinery will have a useful life of 5 years after which it will have no salvage value. The depreciation charged during the year 2004-05 was ______________.

In the books of D Ltd. the machinery account shows a debit balance of Rs. $$60,000$$ as on April $$1, 2003$$. The machinery was sold on September $$30$$, $$2004$$ for Rs. $$30,000$$. The company charges depreciation @ $$20\%$$ p.a. on diminishing balance method. Profit/Loss on sale will be ____________.

Suraj Ltd. purchased a machine on 1.1.2003 for Rs 1,20,000. Installation expenses were Rs 10,000. Residual value after 5 years Rs 5,000. On 1.7.2003, expenses for repairs were incurred to the extent of Rs 2000. Depreciation is provided under straight line method. Depreciation rate = 10%. Annual Depreciation = _________