Class 11 Accountancy Chapter 15 Worksheet (Depreciation)
Before you proceed, below are the quick details:
- Class: 11
- Subject: Accountancy
- Chapter Number: 15
- Chapter Name: Depreciation
Let's start the worksheet.
Q1. On 1st April, 2020, Ashoka Ltd. purchased Machinery costing ₹5,00,000 via bank. On July 1, 2023, the Machinery was sold for ₹2,00,000.
Prepare Machinery account calculating depreciation @ 10% p.a. on Original Cost Method.
Accounts are closed on 31st March each year.
Accounts are closed on 31st March each year.
Q2. Birla Cotton Mills purchased machinery on 1st August 2020 for ₹90,000.
On 1st October 2021, it purchased another machine for ₹40,000.
On 30th June 2022, it sold off the first machine purchased in 2020 for ₹58,000 and on the same date purchased new machinery for ₹1,00,000.
Depreciation is provided at 20% p.a. on the original cost each year.
Accounts are closed each year on 31st March.
Show the Machinery Account for three years.
Q3. (Calculation of Gain (Profit)/Loss on Sale of Asset).
Vijay Ltd. purchased a second-hand machine for ₹5,50,000 and spent ₹50,000 on repairs. Depreciation is to be provided @ 10% p.a. by the Straight Line Method. The machine is sold for ₹4,40,000. The accounting year is the financial year.
Calculate gain (profit) or loss on sale of the machine in each of the following alternative cases:
- Case 1: If the date of purchase is 1st April, 2021, and the date of sale is 31st March, 2024.
- Case 2: If the date of purchase is 1st April, 2021, and the date of sale is 30th September, 2023.
- Case 3: If the date of purchase is 1st July, 2021, and the date of sale is 31st March, 2024.
- Case 4: If the date of purchase is 1st July, 2021, and the date of sale is 30th September, 2023.
Q4. Shivam Mills purchased machinery costing ₹3,00,000 on 1st April, 2021. It purchased more machinery on 1st January, 2023, for ₹2,00,000.
On 1st April, 2023, one third of the machinery that was installed on 1st April, 2021, became obsolete and was sold for ₹70,000.
Depreciation is charged at 10% p.a. on original cost.
Prepare Machinery Account for the first three years ending on 31st March, 2024. Also show the balance of the Machinery Account on 1st April, 2024.
Q5. On 1st October, 2021, Niharika Rice Mills purchased a second-hand machine for ₹1,80,000 and spent ₹20,000 on its repair and installation. 30th September, 2024, the machinery was discarded and sold for ₹1,40,000, and an amount of ₹4,000 was paid as dismantling charges. The books are closed on 31st March every year, and depreciation is charged @10% p.a. on the written down value. Prepare Machinery Account from the date of purchase of machinery till the date of sale of machinery.
Q6. Calculate annual depreciation and rate of depreciation under the Straight Line Method in each of the alternative cases:
| Case | Purchase Price of Machinery (₹) | Installation Charges (₹) | Estimated Scrap Value (₹) | Estimated Useful Life (in Years) |
|---|---|---|---|---|
| (a) | 1,80,000 | 20,000 | 10,000 | 5 |
| (b) | 4,75,000 | 25,000 | 50,000 | 5 |
| (c) | 90,000 | 10,000 | 20,000 | 10 |
| (d) | 3,40,000 | 60,000 | 40,000 | 10 |
| (e) | 90,000 | 10,000 | 20,000 | 4 |
Q7. Calculate the amount of Annual Depreciation and Rate of Depreciation under the Straight Line Method (SLM) from the following:
Purchased a second-hand machine for ₹96,000, spent ₹24,000 on its cartage, repairs, and installation. The estimated useful life of the machine is 4 years. Estimated residual value is ₹72,000.
Q8. On 1st July, 2023, Raja Ltd. purchased a second-hand machine for ₹5,00,000 and spent ₹1,00,000 on its cartage, repairs, and installation.
Calculate the amount of depreciation @ 10% p.a. according to the Straight Line Method for the year ending on 31st March, 2024.
Q9. A boiler was purchased from abroad for ₹10,000. Shipping and forwarding charges ₹2,000. Import duty ₹7,000 and expenses of installation amounted to ₹1,000.
Calculate the depreciation for the first three years (separately for each year) @ 10% p.a. on the Diminishing Balance Method.
Q10. Gurman & Co. purchased machinery for ₹40,000 on 1st October, 2021. Depreciation is provided @ 10% p.a. on the Diminishing Balance.
On 31st January, 2024, one-fourth of the machinery was found unsuitable and disposed off for ₹5,600. On the same date, new machinery at a cost of ₹15,000 was purchased.
Write up the Machinery Account for the years ended 31st March, 2022, 2023, and 2024. Accounts are closed on 31st March each year.
The End
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ReplyDeleteNice question I have practised them before my exam and it helps me in scoring good marks
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