Rashid provided the following information at 31 December.

$
machinery at cost 52 000
provision for depreciation of machinery 23 000

Depreciation for the year is calculated at 20% on cost.
After the statement of financial position was prepared it was found that the machinery repairs costing $2000 had been debited to the machinery account.
What is the correct balance on the provision for the depreciation of machinery account?

Q: What topic does this question test?

This question tests Accounting procedures in O-Level Accounting (syllabus code 7707). It is worth 1 mark.

Q: Which exam paper is this question from?

This question appeared in the Cambridge O-Level Accounting Oct/Nov 2020 examination, Paper 1 Variant 2 (7707_w20_qp_12.pdf).

Question

Rashid provided the following information at 31 December.

$
machinery at cost	52 000
provision for depreciation of machinery	23 000

Depreciation for the year is calculated at 20% on cost.
After the statement of financial position was prepared it was found that the machinery repairs costing $2000 had been debited to the machinery account.
What is the correct balance on the provision for the depreciation of machinery account?

Oracle Prep · Accepted Answer

The correct answer is B: $22 600.

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