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WAEC Financial Accounting 2021 Question 41

Question 41

Depreciation

Use the following information to answer questions 41 and 42.
Cost of assets (01/01/18) ₦600,000. Annual Depreciation charge is 15% on reducing balance basis.
Depreciation for the year 2019 is

  1. A.₦180,000
  2. B.₦166,500
  3. C.₦90,000
  4. D.₦76,500
Show the answer and explanation

Answer: D (₦76,500)

Explanation

2018: 90,000; NBV 510,000; 2019: 15% × 510,000 = ₦76,500.