A-LevelAccountingAccounting for non-current assets9706/12 · Oct/Nov 2021 · Q31 Mark
A business has a financial year end of 31 December. It depreciates its machinery on a month-by-month basis. It uses the straight-line method at 10% per annum. It bought a machine, cost $12000, on 1 January 2019 and sold it on 31 March 2020. Which entries relating to this machine were made in the provision for depreciation of machinery account for the year ended 31 December 2020?
A300 (debit), 1500 (credit)
Bno entry (debit), 1200 (credit)
C1200 (debit), no entry (credit)
D1500 (debit), 300 (credit)
✓ Correct answer
D: 1500 (debit), 300 (credit)
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