Videep Institute dhanbad

7979800517
ACCOUNTS TEST

Q. . No 1 what do you mean by depreciation ? 2.5*2=5

Q. No 2 what is the difference between S.L.M and WDV method ?

Q. No 3.On 1st April, 2011, a merchant purchased a furniture costing

Rs.55,000. It is estimated that its life is 10 years at the end of which it
will be sold for Rs.5,000. Additions are made 1st April, 2012 and 1st
October, 2014 to the value of Rs.9,500 and Rs.8,400 (Residual values
Rs.500 and Rs.400 respectively).
Show the Furniture Account for the first four years, Depreciation A/c
is written off according to the Straight Line Method.

Q. No 4. On 1st April, 2016 a firm purchased machinery for Rs

3,00,000. On 1st October, 2016, additional machinery costing Rs
1,50,000 was purchased on 1st October, 2017, the machinery
purchased on 1st April, 2016 having become obsolete, was sold for
Rs 1,35,000. On 1st October, 2018, new machinery was purchased
for Rs 3,75,000 while the machinery purchased on 1st October, 2016
was sold for Rs 1,27,500 on the same day. The firm provides
depreciation on its machinery @ 10%@ 10% per annum on original
cost on 31st March every year.
Show Machinery Account, Provision for Depreciation Account and
Depreciation Account for the period of three accounting years
ending 31st March.

Q.5Calculate Gross Profit from the following information:

₹
Closing Stock 70,000
Wages 40,000
Salary 30,000
Sales 6,88,000
Adjusted Purchase 5,50,000

Q.6Calculate gross profit and cost of goods sold from the following
information:
Net Sales ₹ 8,00,000
Gross Profit is 40% on Sales
Q.7

Q.8