Page 124 - debkxi
P. 124

Depreciation                                                                  15.19

                      10.  Chand & Sons have the following balances on 1st April, 2023:
                          Fixed Asset (At cost)                 ` 10,00,000
                          Provision for Depreciation            `   5,50,000
                          Depreciation is provided on Written Down Value Method @ 10%.
                          Determine the amount of depreciation for the year ended 31st March, 2024 and also show the
                        two accounts.  [Ans.: Depreciation—` 45,000; Provision for Depreciation A/c—` 5,95,000.]
                          [Hint: Depreciation for the year ended 31st March, 2024
                                                             = (` 10,00,000 – ` 5,50,000) × 10/100 = ` 45,000.]
                      11.  GSC Softech provides depreciation on its fixed assets on Straight Line Method @ 5%. The
                        balances as on 1st April, 2023 were as follows:
                          Fixed Asset (At cost)                 ` 10,00,000
                          Provision for Depreciation            `   5,50,000
                          What will be the amount of Depreciation to be provided for the year ended 31st March,
                        2024 and also show the two accounts?
                                      [Ans.: Depreciation—` 50,000; Provision for Depreciation A/c—` 6,00,000.]
   119   120   121   122   123   124   125   126   127   128   129