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Depreciation Methods Worksheet

The document is an accounting worksheet that asks students to answer questions about depreciation of fixed assets. It asks the student to name two depreciation methods, explain the reducing balance method, state the accounting principle followed for depreciation, and perform calculations for depreciation using the straight-line method for two example assets purchased by John and Sam.

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Foram Jivrajani
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209 views3 pages

Depreciation Methods Worksheet

The document is an accounting worksheet that asks students to answer questions about depreciation of fixed assets. It asks the student to name two depreciation methods, explain the reducing balance method, state the accounting principle followed for depreciation, and perform calculations for depreciation using the straight-line method for two example assets purchased by John and Sam.

Uploaded by

Foram Jivrajani
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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1

Name:_______________________________________________________ Date:_________________

Class:__________________ Time:_________________ Max. Marks: 15

Depreciation
1. Name two methods of providing for the depreciation of fixed assets.
Depreciation method 1

Depreciation method 2
[2]

2. Explain the reducing (diminishing) balance method of depreciation.

[2]

3. Which accounting principle is followed while providing depreciation of fixed


assets?

[2]

This worksheet has been downloaded from www.dineshbakshi.com. Home to IGCSE Business Studies, Economics, Accounting and ICT
revision. Loaded with interactive quizzes, business news, study notes, case studies and lot of goodies for teachers and students.

© www.dineshbakshi.com
2

4. John purchased a delivery vehicle for $20000. It has an estimated useful life of
five years and its scrap value is expected to be $4000. John will be providing
depreciation using the straight line (equal instalment) method. Showing your
workings, calculate
a) The annual amount of depreciation to be charged

[2]

b) The annual percentage rate of depreciation to be charged

[2]

5. Sam bought a machine on 1 January 2008 for $10,000. Depreciation is to be


charged at 10% per annum on a straight-line basis. Sam draws up his accounts to
31 December each year.
a) How much depreciation is charged in his accounts for the year ended 31st
December 2008?

[1]

b) How much depreciation is charged in his accounts for the year ended 31st
December 2009?

[1]

This worksheet has been downloaded from www.dineshbakshi.com. Home to IGCSE Business Studies, Economics, Accounting and ICT
revision. Loaded with interactive quizzes, business news, study notes, case studies and lot of goodies for teachers and students.

© www.dineshbakshi.com
3

c) What will be the net book value of the machine at 31st December 2009?

[1]

d) Show the journal entry to enter the depreciation for the year ended 31st
December 2008 in Sam’s accounts.
Particulars Dr.($) Cr.($)

[2]

Teacher’s Comment

This worksheet has been downloaded from www.dineshbakshi.com. Home to IGCSE Business Studies, Economics, Accounting and ICT
revision. Loaded with interactive quizzes, business news, study notes, case studies and lot of goodies for teachers and students.

© www.dineshbakshi.com

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