Fundamentals of Accounting MCQs

Cost of the Machine – Rs. 1,00,000
Scrap value – Rs. 10,000
Useful life – 4 years
Amount of Depreciation under Sum of Years Digits Method for the 3” year is________

The trial balance of Mahesh Traders shows the following information as on 31.03.08
Machinery — Rs.10,00,000 (Dr.)
Provision for Depreciation — Rs.3,00,000 (Cr.)
Entire Machinery was sold on 31.03.09 at a profit of 20% on Book Value. Depreciation is charged at 10% per annum on SLM Basis. Sale proceeds of the machinery will be_________

Periodic inventory system suffers from the following limitations:

A machinery was purchased on 1-04-2008 for Rs.3,10,000 and its scrap value is estimated to be Rs.10,000 at the end of 15 years. On 31-03-2018, it is estimated that it would work for another 10 years. What Is the amount of depreciation for the year ended 31-03-2019, if the company follows Straight Line Method of depreciation?

lf outstanding salary Is appearing In the trial balance, it means______