VIKAS MAHILA CAMPUS ACCOUNTANCY - XI 1) Differentiate between Straight line and Written down value method of depreciation?

What are the cause of Depreciation.? (1) 2) On January 1, 2008, a firm bought a machine for 90,000 and spend 6,000 on its installation and 4,000 on its carriage. It is decided to charge depreciation @ 10% under straight line method. Books are closed on December 31, each year. Show Machinery Account for the year 2008 to 2011. (6)

3) On July 1, 2008, Sehwag Auto Limited purchased Machine for 1,00,000 and spent 4,000 towards its installation. On April 1, 2009, the Furniture was disposed off for 59,820 and on the same day furniture costing 1,60,000 were puchased. Show th Furniture Account and Furniture Disposal Account for the year 2008, 2009 and 2010 if the rate of Depreciation is 15% by Straight Line method. (6) 4) On 1st April, 2007 Rohit Ltd. Purchased a machinery for Rs.1,50,000. On 31st September 2008, another machinery was purchased for Rs. 80,000 and on the same day the machinery bought for Rs. 1,50,000 was sold for Rs. 80,000. On 31 st September 2009, a machine costing Rs. 2,00,000 was purchased and the machine which was purchased on 31st September 2008 was sold on 1st April 2010 for Rs. 75,000. If the business year ending is March 31st each year and the rate of depreciation in 10%. Prepare Machinery A/c for the year 2007-2011 under written down value method of depreciation. (6)

5) On 1st Nov 2008. a machine was purchased by X ltd. for Rs. 1,20,000 and on 1 st Jan 2009 another machine was purchased for Rs. 2,00,000 for expansion of work. On 31 st March 2010, machine costing Rs. 2,00,000 was sold for 1.50,000 and another two machines costing Rs. 70,000 and 50,000 respectively were purchased on the same day. Prepare Machinery A/c for the year 2008-2011 if the business year ending is 31st March every year and the rate of depreciation charged is 20% under written down value method. (6)

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