Page 118 - DEBK-XI(2020)

Depreciation 14.19

10. Chand & Sons have the following balances on 1st April, 2017:
Fixed Asset (At cost) ` 10,00,000
Provision for Depreciation ` 5,50,000
Depreciation is provided on Written Down Value Method @ 10%.
Determine the amount of depreciation for the year ended 31st March, 2018 and also show the
two accounts. [Depreciation—` 45,000; Provision for Depreciation A/c—` 5,95,000.]
[Hint: Depreciation for the year ended 31st March, 2018
= (` 10,00,000 – ` 5,50,000) × 10/100 = ` 45,000.]
11. GSC Softech provides depreciation on its fixed assets on Straight Line Method @ 5%. The
balances as on 1st April, 2017 were as follows:
Fixed Asset (At cost) ` 10,00,000
Provision for Depreciation ` 5,50,000
What will be the amount of Depreciation to be provided for the year ended 31st March,
2018 and also show the two accounts?
[Depreciation—` 50,000; Provision for Depreciation A/c—` 6,00,000.]