UNIT TEST FOR BCOM - DEPRECIATION

Depreciation means

• decrease in the value of assets by wear and tear, caused by their use in the business over a period of time.

• Increase in the value of assets

• Neither Increase nor Decrease in the value of assets

• None of the above

Depreciation is very important item treated under which head of Income

• Income from Salary

• Income from profits and gains from business or profession.

• Income from House Property

• Income from Other sources

In order the claim depreciation, the following Conditions have to be full filled

• Assesses must be owner of the assets. 

      

     

• Assets must be used for business profession

• Assets must be used during the year.

• All of the above

The block of assets scheme was introduced with effect from 1/4/1987.

• 1/4/1988.

• 1/4/1989.

• 1/4/1987.

• None of the above

Block of assets means

• Group of assets falling within a ‘class of assets’ for which same rate of depreciation is prescribed.

• Group of assets

• same rate of depreciation

• None of the above

Partial Depreciation or Half Deprecation is allowed

• allowed on an asset acquired and used the business during the previous year for less than 180 days.

• allowed on an asset acquired and used the business during the previous year for more than 180 days.

• allowed on an asset acquired and used the business during the previous year for more than 250 days.

• None of the above

Additional Depreciation is allowed on

• Building

• Furniture

• Plant and Machinery

• Books

Additional Depreciation shall be allowed

• shall be allowed @ 15%

• shall be allowed @ 30%

• shall be allowed @ 20%

• shall be allowed @ 10%

The unabsorbed depreciation can be deducted from Income under any other heads

• except Casual income

• except Agricultural income

• except income from salary

• None of the above

Rate of Depreciation on Residential building is

• 15%

• 5%

• 10%

• 25%