CA Foundation · Principles and Practice of Accounting

Depreciation and Fixed Assets

19 practice questions, each with the answer and an explanation.

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Random questions from this topic, one at a time. You see the answer and the explanation straight after each one.

All 19 questions

  1. A machine costing Rs 150,000 has an estimated scrap value of Rs 15,000 and a useful life of 5 years. What is the annual depreciation under the straight-line method?
  2. A machine costing Rs 50,000 is depreciated at 20% per annum on the written-down value. What is the depreciation for the second year?
  3. A machine costing Rs 200,000 is depreciated at 15% per annum on the written-down value. What is the depreciation for the second year?
  4. An asset bought for Rs 150,000 is depreciated at 10% on the written-down value for 2 years and then sold for Rs 126,500. What is the profit or loss on the sale?
  5. An asset bought for Rs 100,000 is depreciated at 10% on the written-down value for 2 years and then sold for Rs 91,000. What is the profit or loss on the sale?
  6. An asset bought for Rs 100,000 is depreciated at 20% on the written-down value for 2 years and then sold for Rs 56,000. What is the profit or loss on the sale?
  7. An asset bought for Rs 200,000 is depreciated at 10% on the written-down value for 2 years and then sold for Rs 154,000. What is the profit or loss on the sale?
  8. An asset bought for Rs 100,000 is depreciated at 20% on the written-down value for 2 years and then sold for Rs 59,000. What is the profit or loss on the sale?
  9. A machine costing Rs 200,000 has an estimated scrap value of Rs 40,000 and a useful life of 5 years. What is the annual depreciation under the straight-line method?
  10. A machine costing Rs 50,000 has an estimated scrap value of Rs 5,000 and a useful life of 10 years. What is the annual depreciation under the straight-line method?
  11. A machine costing Rs 150,000 has an estimated scrap value of Rs 7,500 and a useful life of 10 years. What is the annual depreciation under the straight-line method?
  12. A machine costing Rs 200,000 has an estimated scrap value of Rs 40,000 and a useful life of 8 years. What is the annual depreciation under the straight-line method?
  13. A machine costing Rs 200,000 is depreciated at 20% per annum on the written-down value. What is the depreciation for the second year?
  14. A machine costing Rs 120,000 is depreciated at 25% per annum on the written-down value. What is the depreciation for the second year?
  15. An asset bought for Rs 150,000 is depreciated at 20% on the written-down value for 2 years and then sold for Rs 88,000. What is the profit or loss on the sale?
  16. An asset bought for Rs 100,000 is depreciated at 10% on the written-down value for 2 years and then sold for Rs 76,000. What is the profit or loss on the sale?
  17. An asset bought for Rs 150,000 is depreciated at 20% on the written-down value for 2 years and then sold for Rs 91,000. What is the profit or loss on the sale?
  18. An asset bought for Rs 200,000 is depreciated at 10% on the written-down value for 2 years and then sold for Rs 157,000. What is the profit or loss on the sale?
  19. An asset bought for Rs 150,000 is depreciated at 10% on the written-down value for 2 years and then sold for Rs 131,500. What is the profit or loss on the sale?

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