passwella.
Menu

WAEC Financial Accounting 2006 Question 39

Question 39

Depreciation

Motor vehicles (at cost) 1/1/2002 N1,000,000
Addition to motor vehicles 1/7/2003 N600,000
Depreciation rate 10%
Using the reducing balance method, the depreciation charged for year 2002 was

  1. A.N100,000
  2. B.N90,000
  3. C.N80,000
  4. D.N60,000
Show the answer and explanation

Answer: A (N100,000)

Explanation

10% × 1,000,000 = N100,000 in the first year.