IC46 GENERAL INSURANCE ACCOUNTS PREPARATION - 23

Que. 1 : Q1) A machine purchases for Rs.70,000 on 01.04.2007 depreciated at 5% p.a. under Diminishing Balance Method. What is the value of machine as on 01.04.2010.

   1.  a) 42563.85

   2.  b) 50000.24

   3.  c) 60046.25

   4.  d) 70035.36

Que. 2 : Q2) The tax to be charged to Profit and Loss account is ________ which include current Tax plus Deferred Tax.

   1.  a) Tax expenses

   2.  b) Deferred Tax

   3.  c) Current Tax

   4.  d) None of these

Que. 3 : Q3) A lease was acquired with a premium of Rs.3,00,000 on 01.04.2006 for 4 years only. Depreciation under annuity system at 4% p.a. interest is charged. Rupee 1 is present value over 4 years @ 4% p.a. Calculate annual depreciation under Annuity method?

   1.  a) Rs.45896

   2.  b) Rs.63694

   3.  c) Rs.75695

   4.  d) Rs.82647

Que. 4 : Q4) Financial accounting is the process of identifying, measuring, classifying, recording, summarising, analysing, interpreting and reporting the financial performance and the financial position of the enterprise through financial statements. The process stated above is called _________________.

   1.  a) Methods of Accounting

   2.  b) Accounting policies

   3.  c) Management policies

   4.  d) Accounting process

Que. 5 : Q5) Under the revised Companies Act 2013, what is the basis of charging depreciation:

   1.  a) Rate of depreciation prescribed by Companies Act

   2.  b) Useful life of assets

   3.  c) 10 years presumed for furniture and fixture and 20 years for building

   4.  d) None of the above