O-LevelAccountingAccounting procedures7707/11 · May/June 2017 · Q131 Mark
The following account appeared in a trader's ledger. Provision for depreciation of machinery account $ $ 31 Dec 2015 balance c/d 3000 31 Dec 2015 income statement 3000 3000 3000 31 Dec 2016 balance c/d 5100 1 Jan 2016 balance b/d 3000 31 Dec 2016 income statement 2100 5100 5100 1 Jan 2017 balance b/d 5100 There were no sales or purchases of machinery during the two year period. What does the $5100 on 1 January 2017 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
Practise more questions on this topic
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.
Sign up free →