O-LevelAccountingAccounting procedures7707/12 · May/June 2014 · Q121 Mark
The following account appeared in a trader's ledger. Provision for depreciation of machinery account $ $ 31 Dec 2011 balance c/d 3000 31 Dec 2011 income statement 3000 3000 3000 31 Dec 2012 balance c/d 5100 1 Jan 2012 balance b/d 3000 31 Dec 2012 income statement 2100 5100 5100 1 Jan 2013 balance b/d 5100 There were no sales or purchases of machinery during the two year period. What does the $5100 on 1 January 2013 represent?
Aaccumulated depreciation of machinery using the diminishing (reducing) balance method
Baccumulated depreciation of machinery using the straight line method
Cnet book value of machinery using the diminishing (reducing) balance method
Dnet book value of machinery using the straight line method
✓ Correct answer
A: accumulated depreciation of machinery using the diminishing (reducing) balance method
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