O-LevelAccountingAccounting procedures7707/11 · Oct/Nov 2018 · Q141 Mark

Chris purchased a machine costing $15000 on 1 January 2016. He depreciates the machine using the diminishing (reducing) balance method at 20% per annum. Which journal entry did Chris make on 31 December 2017?

Aincome statement 2400 provision for depreciation of machinery 2400

Bincome statement 3000 provision for depreciation of machinery 3000

Cprovision for depreciation of machinery 2400 income statement 2400

Dprovision for depreciation of machinery 3000 income statement 3000

✓ Correct answer

A: income statement 2400 provision for depreciation of machinery 2400

Oracle Prep sorts past-paper questions by topic, so you can drill Accounting procedures and see which topics are most likely to come up next.

Topic: Accounting procedures, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, Oct/Nov 2018 Paper 1 Variant 1, question 14.

Questions and mark schemes are from past examination papers and remain the copyright of the exam board. How Oracle Prep builds its content