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The estimated life of a machine costing Rs. 9,00,000 is 9 years. The firm follows the 'Sum of Year Digit' Method of depreciation. The amount of depreciation provision on the machine in the sixth year of its life will be:
A
Rs. 40,000
B
Rs. 60,000
C
Rs. 80,000
D
Rs. 90,000
Correct Answer:
Rs. 80,000
A machine was bought on 1
st
January, 1994 for Rs. 10,000. Its working life was estimated to be four years. The method of depreciation used is the 'sum of the year digit'. The machine was discarded and sold on 30
th
June, 1996 for Rs. 1,000. The profit/loss on sale of the discarded machine was:
A
Rs. 1,120 loss
B
Rs. 2,250 loss
C
Rs. 1,500 loss
D
Rs. 1,000 loss
A company owns some land and buildings for which the following details are relevant : Cost of land Taka 50,000; cost of building Taka 100,000, estimated life of building 20 years, estimated residual value of building Taka 2000; estimated residual value of land Taka 50,000. The company uses the straight line depreciation method. Which is the correct annual depreciation charge for this asset?
A
Taka 4000
B
Taka 4900
C
Taka 7400
D
Taka 7500
A machine was purchased for Rs. 10,000 and its life was estimated to be 3 years, and at the end of its life, its book value was Rs. 5,120. If depreciation is calculated according to Diminishing Balance method, the rate of depreciation would be:
A
25%
B
15%
C
20%
D
10%
An asset is purchased for P 9,000.00. Its estimated economic life is 10 years after which it will be sold for P 1,000.00. Find the depreciation in the first three years using sum-of-years digit method
A
P 3,279.27
B
P 3,927.27
C
P 3,729.27
D
P 3,792.72
A machine was purchased for Rs. 1,000 and its life was estimated to be 3 years and at the end of life its book value will be Rs. 512. If depreciation is calculated according to written down value method. The rate of depreciation would be:
A
25%
B
15%
C
20%
D
10%
Consider the following statements.
1. Marginal costing and absorption costing are the same.
2. For decision-making, absorption costing is more suitable than marginal costing.
3. Marginal costing is based on the distinction between fixed and variable costs.
Which of the statement(s) given above is/are correct?
A
Both 1 and 2
B
Both 2 and 3
C
Both 1 and 3
D
None of these
Which of the following statements are true?
1. Marginal costing is not an independent system of costing.
2. In marginal costing, all fundamentals of cost are divided into fixed and variable components.
3. In marginal costing, fixed costs are treated as product cost.
4. Marginal costing is not a technique of cost analysis.
A
Both 4 and 1
B
Both 2 and 3
C
Both 1 and 2
D
Both 2 and 4
In the given numbers, if in each number first digit is replaced by the third digit, second digit is replaced by the first digit and third digit is replaced by the second digit then which number will be the biggest? 653 749 872 933 541
A
933
B
872
C
749
D
653
The cost of a machine having a span of life 5 years is Rs. 10,000. It has a scrap value of Rs. 1,000. The amount of depreciation in the first year under the sum of year's digit method will be:
A
Rs. 1,600
B
Rs. 1,800
C
Rs. 2,500
D
Rs. 3,000
A machine is purchased for Rs. 10,000,00 and has an estimated life of 10 years. The salvage value at the end of 10 years is Rs. 1,50,000. The book value of the machine at the end of 5 years using general straight line method of evaluation of depreciation is
A
Rs. 4,75,000
B
Rs. 5,75,000
C
Rs. 6,50,000
D
Rs. 8,50,000