passwella.
Menu

WAEC Financial Accounting 1991 (August) Question 11

Question 11

Depreciation

Where there is provision for depreciation account, fixed assets must be shown in the Balance Sheet at the I. written down values; II. historical costs less depreciation for a particular period only; III. historical costs less total depreciation to date.

  1. A.I only
  2. B.II only
  3. C.III only
  4. D.I and II only.
  5. E.I and III only.
Show the answer and explanation

Answer: C (III only)

Explanation

With a provision account the balance sheet shows cost, minus all depreciation to date, giving net book value.