Commerce Accountancy · Economics
Journal entries and depreciation are core accountancy topics involving the systematic recording of financial transactions and the calculation of asset value reduction over time. Students must solve problems related to bad debts, provision calculations, and error rectification. These questions are essential for candidates appearing in commerce and accounting competitive exams.
In an enterprise some tools were purchased worth Rs.2000 and later after 5 months additional tools worth Rs.4000 were purchased. It was presumed that the value of the total tools at the end of the year will be Rs.2000. What will be the depreciable value?
A purchased an old computer costing $Rs. 10,000$ and incurred $Rs. 1,000$ on its repair and $Rs. 500$ on its packing. He sold the computer at $20$% margin on selling price. The sales value will be _________.
On the basis of following information answer the following question.
| The balance in accumulated depreciation account of a company at the beginning of year $2008 - 2009$ was Rs$2,00,000$ when the original cost of the assets amounted to Rs$10,00,000$. The company charges $10\%$ depreciation on a SLM basis for all assets including those which have been either purchased or sold during the year. One such asset costing Rs.$5,00,000$ which accumulated depreciation as at the beginning of the year of Rs$80,000$ was disposed off during the year. |
|---|
Depreciation from the current year = ?
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 = ?
A trader purchased a machinery for Rs.10,000 in jan 2004, Depreciation is charged @ 25% diminishing balance. At the end of third year it was sold for Rs.1,000. Profit or Loss on sale of machine will be:
A machine was purchased for Rs. 5,000 installation expenses amounted to Rs. 2,000 wages of Rs. 4,000 were paid on installation. The scrap value at the end of its useful life of 10 years is Rs. 6,000. Repairs of Rs. 6,000 was made after 6 months from the date of purchase. Calculate depreciation.
A purchased an old computer costing Rs. $10,000$ and incurred Rs. $1,000$ on its repair and Rs. $500$ on its packing. He sold the computer at $20\%$ margin on selling price. The sales value will be _________________.
On the basis of the information given below, answer the given question.
| A firm, which depreciates its machinery at $10\%$ p.a on WDV method, had on $1st$ April, $2002$, Rs$9,72,000$ in the debit of machinery account. During the year ended $31st$ March, $2003$, a part of the machinery purchased on $1st$ April, $2000$ for $Rs.80,000$ was sold for Rs.$45,000$ on $1st$ October, $2002$ and a new machinery at a cost of Rs.$1,50,000$ was purchased and installed on the same date, installation charges being Rs.$8,000$. On $31st$ March, $2003$, the firm decided to change its method of charging depreciation from WDV method to SLM with effect from April, $2000$, the rate of depreciation remaining the same as before. |
|---|
Depreciation on machine sold upto $1.10.2002$ in year $2002 - 2003$ will be-
On the basis of the information given below, answer the given question.
| A firm, which depreciates its machinery at $10\%$ p.a on WDV method, had on $1st$ April, $2002$, Rs$9,72,000$ in the debit of machinery account. During the year ended $31st$ March, $2003$, a part of the machinery purchased on $1st$ April, $2000$ for $Rs.80,000$ was sold for Rs.$45,000$ on $1st$ October, $2002$ and a new machinery at a cost of Rs.$1,50,000$ was purchased and installed on the same date, installation charges being Rs.$8,000$. On $31st$ March, $2003$, the firm decided to change its method of charging depreciation from WDV method to SLM with effect from April, $2000$, the rate of depreciation remaining the same as before. |
|---|
Extra depreciation due to change in method will be-
On the basis of the information given below, answer the given question.
| A firm, which depreciates its machinery at $10\%$ p.a on WDV method, had on $1st$ April, $2002$, Rs$9,72,000$ in the debit of machinery account. During the year ended $31st$ March, $2003$, a part of the machinery purchased on $1st$ April, $2000$ for $Rs.80,000$ was sold for Rs.$45,000$ on $1st$ October, $2002$ and a new machinery at a cost of Rs.$1,50,000$ was purchased and installed on the same date, installation charges being Rs.$8,000$. On $31st$ March, $2003$, the firm decided to change its method of charging depreciation from WDV method to SLM with effect from April, $2000$, the rate of depreciation remaining the same as before. |
|---|
Closing balance of machinery account will be-
Consider the following statements about Agriculture market yard-
1.Although farmers are not required to pay anything, in practice they pay Rs 3.50 per every hundred rupees of trading towards unloading, cleaning and maintenance charges.
2.This is deducted by the trader while making payment to the farmer and is paid to the AMY office.
which of the above statements are correct?
Mr. Nachiket, owner of Furniture Shop, owns a personal residence that cost Rs. 6,00,000, but has a market value of Rs.9,00,000. During preparation of the financial statement for the business, the entire value of property was ignored and was not shown in the financial statements. The principle that was followed was _________________.
Impress amount -Rs. 500. what will be the amount of re-imbursement if following expenses were incurred by the petty cashier during the month-telephone = Rs. 150, Tiffin = Rs. 50, small Repairs. =Rs. 30 general expenses = Rs. 100.
Postage stamps purchased for Rs. 30 by business. This transaction will be recorded in ________________.
Trial balance provides you the following information:
Debtors 80,000
Bad debts 2,000
Provision for bad debts 4,000
It is desired to maintain a provision for bad debt of 1,000. State the amount to be debited/credited in profit and loss account.