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All posts related to Depreciation

Robin P George
Shared from Accounting Test on Mar 04, 2015 2:33 PM

Directions: Choose the correct option for the given question.

A machinery is depreciating under Sum of the Year Digit Method. Depreciation of 3rd year was Rs.2,000/-. What was the original cost of machinery assuming that the estimated life of machinery was 4 years?

 
Rs. 15,000
Rs. 1,50,000
Rs. 10
None of these
Please type your answer before submitting.

Right ans is 3

Balamurugan
Shared from Accounting Test on Sep 07, 2013 7:51 PM

When Interest is received on Sinking Fund Investment method, which of the following accounts will be credited?

(i) Interest on Sinking Fund Investment account

(ii) Sinking Fund account


(iii) Bank account

 
(I), (ii) and (iii)
Only (ii) and (iii)
Only (I) and (iii)
Only (I)
Please type your answer before submitting.

How ? explain this

Demo
Shared from Accountancy on Apr 01, 2012 11:10 AM

Directions: Choose the correct option for the given question.

Which of the following methods for providing depreciation is not a calendar year method?

 
Sum of the Year Method
Depletion Method
Fixed Installment Method
None of these
Please type your answer before submitting.

Depletion

Naveen Negi
Shared from Accountancy on Apr 04, 2011 1:22 AM

Directions: Choose the correct option for the given question.

Which of the following depreciation methods doesn`t bring the value of asset to zero?

 
Annuity method
Diminishing value method
Fixed installment method
None of these
Please type your answer before submitting.

Annuity