MCQ - Depreciation Accounting (Part - 2) CA Foundation Notes | EduRev

Fundamentals of Accounting for CA CPT

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CA Foundation : MCQ - Depreciation Accounting (Part - 2) CA Foundation Notes | EduRev

 Page 1


CPT Section A: Fundamentals of Accounting 
Chapter-5  
Part 5: Miscellaneous Concepts of Depreciation 
CA. Poonam Patni 
 
 
Depreciation Accounting 
Page 2


CPT Section A: Fundamentals of Accounting 
Chapter-5  
Part 5: Miscellaneous Concepts of Depreciation 
CA. Poonam Patni 
 
 
Depreciation Accounting 
Page 3


CPT Section A: Fundamentals of Accounting 
Chapter-5  
Part 5: Miscellaneous Concepts of Depreciation 
CA. Poonam Patni 
 
 
Depreciation Accounting 
MCQ1: XYZ Ltd. Purchased a machine for Rs. 1,20,000 on            
01.01.2012. Installation expenses were Rs. 10,000. Life of the 
asset is 5 years. Residual value is Rs. 2,000. Depreciation is 
charged as per SLM @ 10%. What is the amount of annual 
Depreciation. 
a) Rs.13,000 b) Rs. 17,000 
c) Rs. 21,000 d) Rs. 25,000 
=1,20,000 + 
10,000 
=1,30,000 X 
10% 
= 13,000 
Page 4


CPT Section A: Fundamentals of Accounting 
Chapter-5  
Part 5: Miscellaneous Concepts of Depreciation 
CA. Poonam Patni 
 
 
Depreciation Accounting 
MCQ1: XYZ Ltd. Purchased a machine for Rs. 1,20,000 on            
01.01.2012. Installation expenses were Rs. 10,000. Life of the 
asset is 5 years. Residual value is Rs. 2,000. Depreciation is 
charged as per SLM @ 10%. What is the amount of annual 
Depreciation. 
a) Rs.13,000 b) Rs. 17,000 
c) Rs. 21,000 d) Rs. 25,000 
=1,20,000 + 
10,000 
=1,30,000 X 
10% 
= 13,000 
MCQ2: Which of the 
following is not 
correct in respect to 
fixed asset. 
a) They are acquired for 
using them in the conduct 
of business operations.  
b) They are not meant for 
resale to earn profit. 
c) They can easily be 
converted into cash. 
d) Depreciation at 
specified rates is to be 
charged on most of the 
fixed asset. 
Page 5


CPT Section A: Fundamentals of Accounting 
Chapter-5  
Part 5: Miscellaneous Concepts of Depreciation 
CA. Poonam Patni 
 
 
Depreciation Accounting 
MCQ1: XYZ Ltd. Purchased a machine for Rs. 1,20,000 on            
01.01.2012. Installation expenses were Rs. 10,000. Life of the 
asset is 5 years. Residual value is Rs. 2,000. Depreciation is 
charged as per SLM @ 10%. What is the amount of annual 
Depreciation. 
a) Rs.13,000 b) Rs. 17,000 
c) Rs. 21,000 d) Rs. 25,000 
=1,20,000 + 
10,000 
=1,30,000 X 
10% 
= 13,000 
MCQ2: Which of the 
following is not 
correct in respect to 
fixed asset. 
a) They are acquired for 
using them in the conduct 
of business operations.  
b) They are not meant for 
resale to earn profit. 
c) They can easily be 
converted into cash. 
d) Depreciation at 
specified rates is to be 
charged on most of the 
fixed asset. 
MCQ 3: Which of 
the following 
expenses is not 
included in the 
acquisition cost 
of a plant  & 
equipment. 
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