Accountancy 25 Marks
Date: 17/11/2025 1 Hr.
Q1. Which of the following is/are feature(s) of accumulated depreciation account method? 1
i. Asset account continues to appear at its original cost year after year over its entire
life.
ii. Depreciation is accumulated on a separate account instead of being adjusted in
the asset account at the end of each accounting period.
(a) Only (i) (b) Only (ii)
(c) Both (i) and (ii) (d) Neither (i) nor (ii)
Q2. The term amortisation is used to write off: 1
(a) Fixed Assets (b) Intangible Assets
(c) Tangible Assets (d) Wasting Assets
Q3. Which of the following accounting concepts or principles require the calculation of 1
depreciation of the fixed assets:
(a) Accrual concept (b) Consistency Concept
(c) Matching concept (d) Prudence concept
Q4. A Ltd. purchased a machine on 1.1.2019 for Rs 1,20,000. Installation expenses were Rs 1
30,000. Residual value after 5 years Rs 5,000. On 1.7.2019, expenses for repair were
incurred to the extent of Rs 2,000. Depreciation is provided @10% p.a. on the written
down value method. Total depreciation after 2nd year:
(a) Rs 28,500 (b) Rs 25,000 (c) Rs 13,000 (d) Rs 10,500
Q5. What is the rate of charging depreciation under diminishing method? 1
(a) 10% p.a. (b) 12% p.a. (c) 15% p.a. (d) Not fixed
Q6. On 1st April, 2011 Prerna Ltd purchased a second hand machine for Rs.1,16,000 and 4
spent Rs.4,000 on its erection. On 1st October, 2013 this machine was sold for
Rs.57,200. Prepare the machinery account for the first 3 years according to written down
value taking rate of depreciation 10% per annum. Accounts are closed on 31st March,
each year.
Q7. M/s. Sahani Enterprises acquired a printing machine for ₹ 40,000 on July 01, 2016 and 4
spent ₹ 5,000 on its transport and installation. Another machine for ₹ 35,000 was
purchased on January 01, 2017. Depreciation is charged at the rate of 20% on written
down value. Prepare Printing Machine account for three years ending on 31st March
2019.
Q8. Rohini Cement Ltd purchased on 1st January, 2010 a plant for Rs.80,000. On 1st April, 6
2011, it purchased additional plant costing Rs.48,000. On 1st September, 2012 the plant
purchased on 1st January, 2010 was sold off for Rs.42,000 and on the same date fresh
plant was purchased at the cost of Rs.75,000.
Depreciation is provided at 10% per annum on the diminishing balance method every
year. Accounts are closed each year on 31st December. Show the plant account for 3
year.
Q9. Azad Ltd. purchased furniture on October 01, 2014 for ₹ 4,50,000. On March 01, 2015 it 6
purchased another furniture for ₹ 3,00,000. On July 01, 2016 it sold off the first furniture
purchased in 2014 for ₹ 2,25,000. Depreciation is provided at 15% p.a. on written down
value method each year. Accounts are closed each year on March 31. Prepare furniture
account, and accumulated depreciation account for the years ended on March 31, 2015,
March 31, 2016 and March 31, 2017. Also, prepare the furniture disposal account.