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.
A machinery was purchased on $1-1-2013$. It was delivered on $1-4-2013$. The installation was completed on $1-7-2013$. The trail run was completed on $30-9-2013$ and was made available for use on $1-10-2013$. The actual utilization started from $1-12-2013$. The effective period for calculation of depreciation for $2013$ is __________.
ABC Ltd. paid Rs. $24$ lakh for use of copy right purchased. This amount can be written off under _________ method of depreciation.
Given that the value of furniture on $1-1-2001$ is $Rs. 80,000$ furniture purchased during the year is $Rs. 40,000$, sale of furniture on no loss on profit basis is $Rs. 20,000$ and the furniture is valued at $Rs. 70,000$ on $31.12.2001$, the depreciation for the year $2001$ will be _______________.
On 1.1.2015, N Ltd. has a stock of bottles valued at Rs. $8,000$. On 1.7.2015, they purchased additional bottles which amounted to Rs. $5,000$ on 31.12.2015, the stock of bottles were revalued at Rs. $10,500$. Depreciation on bottle = ?
In 2012, S Ltd. acquired a machine at a cost of Rs. $50,000$. The Production Units for first three years are $15,000$; $20,000$ and $25,000$ respectively. Depreciation for the third year = ?
N Ltd. purchased a machinery on April 1, 2010 for Rs 6,00,000. It is estimated that the machinery will have a useful life of 5 years after which it will have no salvage value. If the company follows sum of year digit method of depredation, the amount of depreciation charged during the year 2014-2015 was ____________.
Madan Engineers Ltd. purchased a new office equipment on $1$st January for Rs. $50,000$ on lease basis. The company intends to provide for renewal of lease at the end of $5$ years by setting up depreciation fund which may be invested outside the business which will yield interest at $5\%$. Sinking fund table shows Rs. $0.2309$ invested every year will provide Re. $1$ at the end of $5$ years at $5\%$ interest. How much should be transferred to depreciation fund A/c every year in order to provide for renewal of the plant at the end of $5$ years.
What amount should be transferred annually to depreciation fund a/c if the cost of the plant is Rs. $600000$, if its is to be written off over $4$ years if sinking fund table shows Rs. $0.23549$ invested annually at $4\%$ for yr amount to Rs. $1.0$.
An asset is purchased for Rs. $50,000$ on $1$st January. The life of the machine is estimated to be $5$ years. It is decided to provide depreciation under annuity method by charging $5\%$ interest. The annual depreciation will be ____________.
Cost of machine $Rs. 1,00,000$ scrap value $Rs. 10,000$; life $4$ years. What will be the amount of depreciation according to sum of years digit method in the first year?
X Ltd., purchased goods for Rs.5,00,000 and sold 9/$10^{th}$ of the value of goods for Rs. 6,00,000. Net expenses during the year were Rs. 25,000. The company reported its net profit as Rs. 75,000. Which of the following concept is violated by the company?
A businessman purchased goods for Rs.25,00,000 and sold 80% of such goods during the accounting year ended $31^{st}$ March, 2019. the market value of the remaining goods was Rs.4,00,000. He valued the closing stock at cost. He violated the concept of _________________.
A debit note for Rs $20,000$ issued to Mr. Z for goods returned by us is to be accounted for in _______________.
Mohan purchased a machinery amounting Rs.10,000 on 1.4.2010.
On 31.3.2019, similar machinery could be purchased for Rs.20,000 but the realizable value of the machinery (purchased on 1.4.2010) was estimated at Rs.15,000. The present discounted value of the future net cash inflows that the machinery was expected to generate in the normal course of business, was calculated as Rs 12,000.
The present value of machinery is ______________.
A purchase of goods from Nathan amounting to Rs. 3,000 has been wrongly entered in the Sales Book. However Nathan Account has been correctly credited. Which of the following rectification entry is correct?