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DK Goel Class 11 Accountancy: Chapter 16

DK Goel Class 11 Accountancy: Chapter 16

Class 11 DK Goel Solutions Chapter 16 - Depreciation

D K Goel Solutions Class-11 Accountancy Chapter 16 helps the student to understand a vital methodology of accounting which is nothing but depreciation. As accounting is a subject like an ocean that uses the financial terms as its language, depreciation acts as the essence of salt in that ocean. In Chapter 16, the concept of depreciation, it's causes and formula along with solved questions were clearly explained to the students. DK Goel accountancy class 11 solutions are curated by the experts to understand the concept well. Students can download Class 11 Accountancy chapter 16 pdf for free here.

In Chapter 16 of the DK Goel accountancy book the student understands the fundamentals and essentials of accounting, that is the depreciation. Depreciation is that chapter of accountancy without which the whole concept of accountancy will fall. In this chapter, we learn about the various definitions of depreciation and the tools and equipment through which it can be evaluated.

In simple words, we can say that depreciation is the decrease in the value of an asset. Through this depreciation concept, we can calculate the revenue or money that can be generated from a used asset. There are various examples and tables in the book which have explained the concept of depreciation more simply and easily. To calculate the depreciation formula is used, the way it has been explained in the book has made the student remember the formula easily.

DK Goel Solution book can be really helpful for preparation. The solutions are available for free in PDF format on the Vedantu website, students can easily download these materials and prepare themselves to crack the accountancy examination.

DK Goel Solutions Class 11 Accountancy Chapter 16 PDF Download

What is Depreciation?

Yes. Students can answer this question after reading the depreciation chapter of Class 11 Accountancy. The subject experts explain and provide several definitions of depreciation stated by various scholars. So that the students can understand easily that the depreciation is an accounting methodology that can be evaluated after using the equipment or something for some time. Here, students also can learn the causes of depreciation and how it is helpful while preparing the subsidiary books. The depreciation concept is used to calculate the revenue generated from the used assets.

The term depreciation is an accounting method, through this method we tend to deduct the total cost of the asset or thing that we have brought for the business. By calculating depreciation value we tend to have more control on our expenses and finances.

Formula of Depreciation

The Class 11 Accounts Chapter 16, Depreciation of DK Goel Solutions has explained clearly the formula used to calculate the depreciation. So students can easily remember the formula after understanding the meaning and the definition of depreciation with the help of DK Goel Class 11 Accountancy Chapter 16 PDF free download.

The Depreciation Formula is:

Annual Depreciation Expense = (Asset cost – Residual Value) / Useful life of the asset.

So students are required to solve several problems or case studies using this depreciation formula. Different methods of calculating depreciation were also taught to the students.

Solved Example

Find The Ledger Postings for Given Transactions?

Dr. Machinery a/c. Cr
Date	Particulars	Amount	Date	Particulars	Amount
April 1, 2015	To Bank account	2,00,000	March 31	By depreciation account	25,000
			March 31	By bank balance	1,75,000
		2,00,000			2,00,000
April 1, 2016	To balance	1,75,000	March 31	By depreciation account	25,000
			March 31	By balance	1,50,000

from these transactions, students need to prepare a depreciation chart and then we need to calculate the value of depreciation as well as the percentage of depreciation.

Calculation

Depreciation = [1,90000+10000]- 50000/2.

Similarly, the percentage can be calculated employing the formula,

Rate of Depreciation = (amount of depreciation/cost of the asset)*100.

Tips to Get a Better Score

DK Goel Solutions for Accountancy of Class 11th Chapter 16 PDF will give proper guidance to the students to increase their score percentage.
As the PDF is easy and free to download, the students can recollect the concepts at any time of their convenience.
Several practice papers make the students become perfect in each and every concept of all the chapters.

Conclusion

Thus, the students can get a clear idea about the concept of depreciation, causes, and methods with multiple examples and scenarios designed by the well-experienced process in DK Goel Solutions of Accountancy Class 11 Chapter 16 PDF. So, students can understand the concept and can achieve an excellent score with ease.

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FAQs on DK Goel Class 11 Accountancy: Chapter 16

1. What are the most frequently asked types of practical questions from the Depreciation chapter in the Class 11 Accountancy exam?

For the Class 11 exams, the most important questions from Chapter 16, Depreciation, usually involve preparing the Asset Account and the Depreciation Account over a period of 3-4 years. Key scenarios you must practise include:

Calculating depreciation using both the Straight-Line Method (SLM) and the Written-Down Value (WDV) method.
Accounting for the purchase of a new asset during the year.
Accounting for the sale of an asset, including calculating profit or loss on the sale.
Preparing a Provision for Depreciation Account along with the Asset Account.

2. How are marks typically distributed in a 5-mark question on depreciation?

In a typical 5-mark practical question on Depreciation for the 2025-26 CBSE exam, the marks are usually distributed to test different steps of the process. A likely breakdown would be:

1 Mark: Correctly calculating the annual depreciation amount.
2 Marks: Correctly posting entries in the Asset Account, including purchase and sale.
1 Mark: Correctly posting entries in the Depreciation Account.
1 Mark: Calculating the final balancing figure or the profit/loss on the sale of the asset.

Showing clear workings is crucial to get full marks.

3. Which topics in Depreciation are considered important for High Order Thinking Skills (HOTS) questions?

HOTS questions from the Depreciation chapter move beyond simple calculations. Expect questions that test your conceptual understanding, such as:

A scenario where the method of depreciation is changed from WDV to SLM midway.
Calculating depreciation on an asset when a part of it is sold, not the whole asset.
Problems involving the creation of a Provision for Depreciation Account where an asset is sold.
Questions that require you to find the rate of depreciation when other figures are given.

These questions test your ability to apply accounting principles in complex situations.

4. What is a common mistake to avoid when calculating depreciation for an asset bought during the financial year?

A very common mistake is calculating depreciation for the entire year on an asset purchased during the year. Remember, depreciation should only be charged for the period the asset was actually used. For example, if a machine is purchased on October 1, 2025, and the financial year ends on March 31, 2026, you must calculate depreciation for only six months (from October to March), not for the full 12 months.

5. Why is it important to practise questions involving the sale of an asset from an exam point of view?

Questions involving the sale of an asset are extremely important because they test multiple concepts in a single problem. Examiners favour these questions as they check if you can:

Calculate depreciation on the asset up to the date of sale.
Determine the book value of the asset on the date of sale.
Correctly record the sale proceeds in the Asset Account.
Accurately calculate and record the Profit or Loss on Sale of Asset.

Mastering this one area can help secure high marks in a long-answer question.

6. Are theory questions from the Depreciation chapter important for final exams?

Yes, theory questions from this chapter are important for 1 or 2-mark questions. You should be prepared to answer questions that ask you to:

Define Depreciation, Amortisation, and Depletion.
State the key differences between the Straight-Line Method and Written-Down Value Method.
Explain the objectives or causes of providing depreciation.

These questions are easy to score on if you have revised the basic concepts.

7. How do I decide whether to use the Straight-Line or Written-Down Value method if the question doesn't specify?

In an exam, the question will almost always specify which method to use. However, if it doesn't, look for clues. If the question mentions calculating depreciation on the 'original cost' or 'fixed instalment method', use the Straight-Line Method (SLM). If it mentions the 'diminishing balance' or 'reducing balance method', or on the 'book value' of the asset, you must use the Written-Down Value (WDV) Method. Always state your assumption clearly.