O-LevelAccountingVerification of accounting recordsOct/Nov 2019Paper 1 Q181 Mark
Joseph depreciates his fixtures by 20% per annum using the straight-line method. A full year's depreciation is charged in the year of purchase. During the year, repairs to fixtures of $400 were debited to the fixtures account. What was the effect of correcting this error?
Aeffect on book value of fixtures: decrease $320; effect on profit for the year: decrease $320
Beffect on book value of fixtures: decrease $320; effect on profit for the year: increase $320
Ceffect on book value of fixtures: decrease $400; effect on profit for the year: decrease $80
Deffect on book value of fixtures: decrease $400; effect on profit for the year: increase $80
✓ Correct Answer
The correct answer is A. This question tests the candidate's understanding of verification of accounting records within the Accountingsyllabus. The examiner's mark scheme requires...
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