Depreciation- straight line method 2

The amount of depreciation charged on machinery is debited to:

• Depreciation account

• Machinery account

• None of these

In which of the following two methods the amount of depreciation remains the same throughout

• Straight line method

• Diminishing balance method

Under straight line method if the cost of asset is 45000 and scrap value is 5000 anduseful life is 10 year, then the amount of depreciation will be:

• 4500

• 4000

• 5000

• 2000

In case of sale of an asset which account is credited

• Sales account

• Goods account

• Asset account

• Cash account

Depreciation under fixed installment method is calculated

• On reducing value of asset

• On purchase price of asset

• On market price of assests

A machine is purchased for 1,80,000 and its installation charges aur 20000. Depreciation is 10% on straight line method. Calculate the value of depreciation for 1st year

• 20000

• 10,000

• 5000

• 18000

A machine was purchased on 1st Jan 2015 for 20000. On 1st July 2015 another machine was purchased for 10000. Depreciation is charged at the rate of 10% on straight line method on 31st December. Calculate the value of depreciation in first year

• 3000

• 2000

• 2500

• 1500

Depreciation of asset for business is:

• Expense

• Income

• Loss

• Games