In this method depreciation is charged on the cost of asset every year:

Related MCQs

• Which of the following statements is true with regard to written down value method of depreciation? i. The rate at which the asset is written off reduces year after year ii. The amount of depreciation provided reduces from year to year iii. The rate of depreciation as well as the amount of depreciation reduce year after year iv. The value of the asset gets reduced to zero over a period of time
• Cost of fixed asset minus accumulated depreciation expenses of the fixed asset:
• Annual depreciation of machine is 40000, cost of machine is 500000, rate of depreciation according to straight-line method will be
• the depreciation charged on an asset is debited to
• Value of an asset is 9 lakh, scrap value is 125000, estimated life is 10 years the cost of depreciation under straight-line method will be
• Tick the correct match 1. Current Asset 1. Depreciation 2. Nominal A/c 2. Land 3. Non Depreciable Asset 3. Insurance A/c 4. Non Cash Expense 4. Prepaid Rent A/c
• If the asset is sold, the provision for depreciation relating to the asset sold is transferred to:
• A second hand car is purchased for ` 2,00,000 and sold at ` 1,40,000 after two years. If depreciation is charged @ 10% on SLM method, find the profit or loss on sale of the car.
• In the above question if the depreciation is charged @10% on written down value method, find the profit or loss on sale of the Second hand car.
• Under which method of depreciation annual depreciation goes on decreasing