JAMB Principles of Accounts 2017 Question 20

Question 20

Departmental Accounts

Use the information below to answer questions 19 and 20 (departmental profit and loss extract in the figure).
It is the tradition of the organization to apportion expenses in the proportion 60%:40% for S and T respectively.

The depreciation to be charged to department T is

A.₦400
B.₦300
C.₦500
D.₦600

Show the answer and explanation

Answer: A (₦400)

Explanation

Total depreciation is ₦1,000 and S takes ₦600, so T is charged 1,000 − 600 = ₦400 (which is 40%).