Depreciation Te...

Q Ltd. acquired machinery on 1st January 2011 at a cost of Rs. $$72,000$$ and spent Rs. $$8,000$$ for its installation. The firm writes off depreciation at $$10$$% p.a on the original cost every year. The books are closed on 31st December every year, Closing balance of machinery account for 1st and 2nd year as per fixed instalment method will be Rs. _______

Z Ltd. acquired machinery on 1st January 2011 at a cost of Rs. $$72,000$$ and spent Rs. $$8,000$$ for its installation. The firm writes off depreciation at $$10$$% p.a on the original cost every year. The books are closed on 31st December every year. Depreciation for 1st and 2nd year as per fixed instalment method will be Rs. ________

Which of the following is/are disadvantage of fixed instalment method of charging depreciation?

A manufacturer owns three machines - the first acquired on 1.1.2011 for Rs. $$1,10,000$$, the second on 1,7,2013 for Rs.$$90,000$$, and the third on 1.10.2015 for Rs. $$1,30,000$$. He expects to use each machine for ten years and realize the scrap for Rs. $$10,000$$. Using the straight-lie method what is his depreciation for the year ended 31.12.2015?

Under the diminishing balance method of providing depreciation, depreciation is charged__________.

Which of the following is/are advantage of Reducing balance method/WDV method?

Under ______ method depreciation is provided as a fixed percentage of the written down value of the asset.

Machinery costing Rs. $$20,00,000$$ was purchased on 1.4.2012. The installation charges amounting Rs. $$5,00,000$$ were incurred. The depreciation at $$10$$% p.a on straight line method for the year ended 31st March, 2013 will be -

Original cost = Rs. $$1,26,000$$. Salvage value $$=6,000$$. Useful Life $$=6$$ years. Annual depreciation under SLM = ?

Z Ltd purchased a machine on 1.1.2012 for Rs. $$12,000$$. Installation expenses were Rs. $$1,000$$. Residual value after 5 years Rs. $$500$$. Depreciation is provided under SLM. Depreciation rate is $$10$$% p.a Annual depreciation = ?