WorksheetsGrade 11RBM
Total questions: 5
Worksheet time: 4mins
Under the reducing balance method, depreciation is calculated on:
A. The original cost of the asset
B. The residual value of the asset
C. The book value of the asset at the beginning of the year
D. The total cost plus accumulated depreciation
As per Reducing Balance Method, the amount of Depreciation is _________every year
A) Reduces
B) Constant
C) Both a & b
D) None of these
Depreciation transferred to Profit & Loss A/c entry will be___________
A) Depreciation A/c….Dr ; To Asset A/c
B) Asset A/c…..Dr ; To Depreciation A/c
C) Depreciation A/c….Dr ; To Profit & loss A/c
D) Profit & Loss A/c….Dr ; To Depreciation A/c
Asset purchased will be _________
A) Credited to Asset A/c
B) Credited to Depreciation A/c
C) Debited to Profit and loss A/c
D) Debited to Asset A/c
If the rate of depreciation is 10% per annum under the reducing balance method, the depreciation for the second year on an asset costing ₹10,000 will be:
A. ₹1,000
B. ₹900
C. ₹800
D. ₹700
