3/1/24, 11:55 AM CA Foundation_DPP 1

CA Foundation

Sampurna Fastrack June 2024

Accounting DPP: 1

Depreciation

Q1 B Ltd bought a computer for Rs 50,000 on
1/04/22. B ltd will depreciate this computer on
Straight line method. Scrap value is 10,000 after
10 years of computer's useful life. How much
depreciation will be charged per year.
Q3 A Ltd buys a motor vehicle for it's business for Rs
1,00,000 on 1st april 2022. It's estimated useful
life is 10 years. Estimated scrap value at the end
of useful life will be Rs 20,000. Prepare Motor
vehicle A/c for year 2022-23.

Q2 B Ltd bought a computer for Rs 50,000 on Q4 A ltd purchased an asset for Rs 4,00,000 on 1-
1/04/22. B ltd will depreciate this computer on 4-21. Prepare asset a/c for 2021-22 and 2022-
WDV method @ 20%. How much depreciation 23 if company wants to charge depreciation @
will be charged for first 3 years. 10% on WDV basis.

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3/1/24, 11:55 AM CA Foundation_DPP 1

CA Foundation

Answer Key
Q1 Computer value = 50,000 Depreciation = Rs 80,000/10 = 8,000
Depreciable amount = 50,000-10,000 = 40,000
Q4 Asset A/c
Depreciation = Depreciable amount /
Part Am
estimated useful life Da Dat Particu Aml
icul oun
= Rs 40,000/10 = Rs 4,000 te e lars ount
ars t
Q2 Computer Value on 1/4/22 = 50,000 By
WDV rate = 20% 31/ 40,0
deprec
So, 1st year's depreciation will be = 50000 * 20 03/ 00
1/0 To 4,0 iation
% = 10,000 22 (WN
4/ Ban 0,0 a/c
Computer value on 1/4/23 = 50,000-10,000 = 31/ 1)
21 k 00 By
40,000 03/ 3,60,
balanc
So, 2nd year's depreciation will be = 40,000 * 22 000
e c/d
20 % = 8,000 4,0
Computer Value on 1/4/24 = 40,000 - 8,000 = 4,00
0,0
32,000 ,000
00
So, 3rd year's depreciation will be = 32,000 * 20
31/ By 36,0
% = 6,400 To
03/ deprec 00
1/0 bal 3,6
Q3 23 iation (WN
4/ anc 0,0
Motor vehicle A/c 31/ By 2)
22 e 00
Dat Amo Dat Amlo 03/ balanc 3,24,
Particulars Particulars b/d
e unt e unt 23 e c/d 000
By 3,6
31/0 8,000 3,60,
depreciatio 0,0
1/04 1,00, 3/23 (W.N) 000
To Bank n a/c 00
/22 000 31/0 92,00
By balance Working Note 1
3/23 0
c/d Depreciation for 2021-22 = Rs 4,00,000 * 10 % =
1,00, 1,00, Rs 40,000
000 000 Working Note 2
Working Note:- Depreciation for 2022-23 = Rs 3,60,000 * 10% =
Calculation of amount of depreciation:- Rs 36,000
Depreciable amount = Rs 1,00,000 - Rs 20,000
= Rs 80,000

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