The cost of a machine is ₹1,00,000, scrap value ₹10,000, useful life 10 years. Annual depreciation under straight-line method: MCQ with Answer and Explanation

Question
The cost of a machine is ₹1,00,000, scrap value ₹10,000, useful life 10 years. Annual depreciation under straight-line method:
A. ₹9,000
B. ₹11,000
C. ₹10,000
D. ₹1,000
Answer: Option A
Solution (By JKSSB Mock Tests)
Depreciation = (Cost - Scrap) / Life = (1,00,000 - 10,000) / 10 = ₹9,000.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Question #1
The 'Component Accounting' is required under:
A. AS 15
B. AS 2
C. Ind AS 16 / AS 10
D. AS 13
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Correct Answer: Option C

Explanation:
Ind AS 16 requires significant parts of an asset to be depreciated separately.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
Which of the following is not a column in a three-column cash book?
A. Cash
B. Journal folio
C. Bank
D. Discount
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Correct Answer: Option B

Explanation:
Three-column cash book has discount, cash, and bank columns. Journal folio is not a column; ledger folio might appear.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
The 'Asset Ceiling' in defined benefit plans under Ind AS 19 refers to:
A. No limit
B. Only for gratuity
C. Limit on the amount of surplus that can be recognised as an asset (present value of refunds/reductions in future contributions)
D. Maximum plan assets
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Correct Answer: Option C

Explanation:
Ind AS 19 restricts the recognised asset to the economic benefits available.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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