Journal & Ledger for Recording Accumulated Depreciation

Q.

At the balance sheet date, the balance in the Accumulated Depreciation Account is:

1. Transferred to deprecation account

2. Transferred to asset account

3. Transferred to profit & loss account

4. Deducted from assets in the balance sheet

Q.

The appropriate journal entry to record equipment depreciation expense would consist of a debit to Depreciation Expense and a credit to which of the following accounts?

1. Owner`s equity

2. Cash

3. Accumulated Depreciation

4. Retained earnings

Q.

How to calculate the disposal of fixed assets?

Q.

If an accumulated depreciation account is in use, then the entries for the year’s depreciation would be:

1. Credit Asset Account, debit Depreciation Account

2. Debit Asset Account, credit Profit and Loss Account

3. Credit Accumulated Depreciation Account, debit Depreciation Account

4. Credit Profit and Loss Account, debit Accumulated Depreciation Account

Q.

Which of the following is correct relating to depreciation?

1. Accumulated depreciation debit and depreciation expenses Credit

2. Depreciation expenses Debit and cash Credit

3. Depreciation expenses Debit and accumulated depreciation Credit

4. Cash Debit and depreciation expenses Credit

Q.

The entry to recognize depreciation expense___?

1. is a closing entry

2. is adjusting entry

3. is cash expense

4. None

Q.

Which of the following is correct regarding accumulated depreciation?

1. Sum of all depreciation expenses of a fixed asset

2. It is a temporary account

3. It will have debit balance

4. All the above

Q.

What will be the entry to record depreciation, if accumulated depreciation account is used by company?

1. Depreciation a/c Dr

   To Accumulated Depreciation a/c

2. Depreciation a/c Dr

   To Machinery a/c

3. Machinery a/c Dr

   To Accumulated Depreciation a/c

4. Accumulated Depreciation a/c Dr

   To Machinery a/c

Q.

A company bought machinery for Rs. 10000 and depreciation rate is 10%. Accumulated depreciation account is maintained. Which of the following is correct?

1. Depreciation Account Debit 100

2. Depreciation Account Debit 1000

3. Accumulated Depreciation Account credit 1000

4. None of these

Q. Which of the following factor affect measurement of depreciation?

1. Original cost.
2. Estimated useful life.
3. Scrap or the residual value.
4. All of the above.

Q.

What is a balancing account?

Q.

Suppose asset is purchased for Rs 150000, Accumulated depreciation on SLM is rs. 75000. and asset is now sold for Rs. 70000. calculate gain or loss?

1. Loss of Rs 5000

2. Gain of Rs 70, 000

3. Loss of Rs 80000

4. No gain or loss

Q.

Suppose asset is purchased for Rs 200000, Accumulated depreciation is Rs. 170000. and asset is now sold for Rs. 35000. Calculate gain or loss?

1. Gain of Rs 35, 000

2. Gain of Rs 5, 000

3. Loss of Rs 5, 000

4. Loss of Rs 2, 500

Q. Original cost - 100000, Accumulated Deprecation - 80000, Sale Price - 15000
calculate resulting profit and loss.

1. Loss 20, 000
2. Profit 5000
3. Profit 20, 000
4. Loss 5000

Q.

Suppose asset is purchased for Rs 200000, Accumulated depreciation is rs. 170000. and asset is now sold for Rs. 35000. calculate gain or loss?

1. Profit of Rs 35, 000

2. Gain of Rs 5, 000

3. Loss of Rs 2, 500

4. Loss of Rs 1, 65, 000

Q. In the books of SZ Ltd. the machinery account shows a debit balance of Rs. 60, 000 as on 1.4.2015. The machinery was sold on 30.9.2016 for 30, 000. The company charges depreciation @ 20 % p.a on diminishing balance method. Profit/Loss on sale = ?

1. Rs$13,200$ Profit
2. Rs$13,200$ Loss
3. Rs$6,800$ Profit
4. Rs$6,800$ Loss

Q. Date of purchase 1.1.2013, Purchase Price of Machine Rs. 80, 000, Installation charges Rs. 20, 000. On 30th Sept. 2014, this machine was sold for Rs. 50, 000. Depreciation is to be provide @ 20% p.a.according to Written Down Value Method. Accounts are closed on 31 st March each year. The loss on sale of machine is_______.

1. Rs. 22, 000
2. None of these
3. Rs. 18, 400
4. Rs. 18, 000

Q. Under which of the following method depreciation charges does not declines?

1. All of the above
2. Diminishing balance method
3. Double decline method
4. Annuity method

Q. What is the accumulated depreciation?

1. Sum of all depreciation expenses of a fixed asset.
2. Depreciation expenses.
3. Cost of depletion of assets.
4. Future value of fixed asset.