Journal & Ledger for Recording Depreciation
Trending Questions
A piece of machinery worth Rs. 4, 00, 000 is charged depreciation (Straight line method) at 10%.
Which account shall be credited for recording depreciation when accumulated depreciation account is maintained?
Depreciation account
Machinery account
Accumulated depreciation account
None
A company bought machinery for Rs. 10000 and depreciation rate is 10%. Which account shall be credited for recording depreciation:
Machinery account
Provision for depreciation account
None
Depreciation account
A company bought machinery for Rs. 50, 000 and the salvage value at the end of 5 years is Rs. 5, 000. The company charges depreciation using SLM method. Which of the following is correct?
Depreciation Account Debit 9, 000
Machinery Account Debit 10, 000
Depreciation Account credit 10, 000
Machinery Account Debit 9, 000
The book value of asset is Rs. 12, 000. The asset is sold for Rs. 15, 000. Which of the following is correct?
Profit and Loss Account: Debit 3, 000
Cash Account: Debit 12, 000
None of these
Asset Account: Debit 15, 000
A company bought machinery for Rs. 50000 and depreciation rate is 18%. Which account shall be credited?
Depreciation account by 9000
Machinery account by 9000
Profit or loss account
None of these
Which of the following is the normal balance of an accumulated depreciation account?
Debit balance
Credit balance
Nil Balance
None of the above
The only vehicle owned by a company is reported at its cost of Rs. 50, 000 in the Motor Vehicle account, while the depreciation on the vehicle written off in each of the three years of use is reported in an Accumulated depreciation account at Rs. 25, 000.
Which of the following statements is incorrect regarding when the whole of Rs. 25, 000 need to be transferred away from the Accumulated depreciation account.
When the asset is traded in for another
When the asset is disposed off
When the financial statements are prepared every year
When the asset is revalued
Soloman purchases a machine for Rs. 1, 00, 000 . Its estimated useful life is 5 years and scrap Values Rs. 10, 000. It is decided to write off depreciation under the straight-line method. The correct journal entry to record the same is
Debit depreciation account Rs 18, 000
Credit machinery account Rs 18, 000
Both A & B
None of these
When accumulated depreciation is transferred to asset disposal account, Which of the following is correct?
Accumulated Depreciation Account Debit
Asset Disposal Account Credit
Both A & B
None of these
Calculate the total amount to be debited to depreciation account?
AssetCostSalvage ValueLifeComputer12002005Monitor30005Desk10003007
Rs 200
Rs 260
Rs 100
Rs 360