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Class 11 Depreciation, Provisions and Reserves worksheet
CBSE Accountancy. Straight line and written down value methods, part-year depreciation, sale of an asset, provision for depreciation, and kinds of provisions and reserves. Every sheet has 20 questions in three sections and an answer key, and the numbers change every time.
Sample questions
Real questions from this chapter, as the app sets them. Tap Answer to see the answer and working.
Section A · multiple choice
- 1.
Under the straight line method, the depreciation each year is:
- a rising amount
- nil after the first year
- a falling amount
- the same amount
Answer
(d) the same amount
- 2.
A machine is bought for ₹2,08,000; installation costs ₹9,500. Its life is 5 years and a scrap value of ₹20,000. What is the yearly depreciation by the straight line method?
- ₹39,500
- ₹41,600
- ₹47,500
- ₹43,500
Answer
(a) ₹39,500
(₹2,17,500 − ₹20,000) ÷ 5 = ₹39,500
- 3.
A machine costing ₹30,000 is depreciated at 10% a year by the written down value method. What is the depreciation for year 2?
- ₹6,000
- ₹3,000
- ₹300
- ₹2,700
Answer
(d) ₹2,700
Year 1: ₹3,000; book value ₹27,000 × 10%
Section B · short answer
- 4.
Define depreciation.
Answer
A decline in the value of a fixed asset from use, passage of time or obsolescence, charged as an expense over its useful life.
- 5.
An asset costs ₹3,75,000 (including installation), has a life of 10 years and no scrap value. Find (a) the yearly depreciation (SLM) (b) the book value after 2 years.
Answer
(a) ₹37,500; (b) ₹3,00,000
(₹3,75,000 − ₹0) ÷ 10
Section C · long answer
- 6.
Compare the straight line and written down value methods.
Answer
SLM: fixed amount on cost, book value can reach zero, simple, suits assets used evenly; WDV: fixed rate on book value, falling charge, book value never zero, accepted by tax law, suits machinery.
Fresh sheets for your child
In the app, every Depreciation, Provisions and Reserves sheet is new: the app remembers the questions your child has already had and leaves them out. Print the sheet as a PDF, or use notebook mode and write the answers in a notebook.
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