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?
(A) 20,000 Loss
(B) 20,000 Profit
(C) 10,000 Loss
(D) 10,000 Profit
Which of the following is not a method of charging depreciation?
(A) Straight line Method
(B) Written down value Method
(C) Discounted present value Method
(D) Sum of digits Method
When a person purchasing goods on credit he becomes a_________in the books of the seller?
(A) Debtor
(B) Creditor
(C) Defaulter
(D) Offender
The entry for creating a Provision for bad debts is_____________?
(A) Debit Provision for Bad Debts A/c and credit Debtors A/c
(B) Debit Debtors A/c and credit Provision for Bad Debts A/c
(C) Debit Provision for Bad Debts A/c and credit Profit & Loss A/c
(D) Debit Profit and Loss A/c and credit Provision for Bad Debts A/c.
Bad debts recovered account will be transferred to______________?
(A) Debtor‘s Account
(B) Profit and Loss Account
(C) Provision for Doubtful Debt Account
(D) Either (b )or
____________is also known as Appraisal system of depreciation?
(A) Inventory system
(B) Survey system
(C) Annuity system
(D) Insurance
Which of the following is not depreciated?
(A) Building
(B) Land
(C) Plant and Machinery
(D) Office equipment
Which of the following is an external cause of depreciation?
(A) Routine repair and maintenance
(B) Misuse
(C) Obsolescence
(D) Wear and tear
Depreciation is calculated on the____________?
(A) Cost price of asset
(B) Market price
(C) Cost+ Transport+ Installation expenses
(D) Cost or market values whichever is less
Which of the following statements is correct about Depreciation?
(A) Depreciation cannot be provided in case of loss in a financial year
(B) Depreciation is a charge against profit
(C) Depreciation is provided in the books only when there is profit
(D) Depreciation is an appropriation of profit