O-LevelAccountingAccounting procedures7707/12 · May/June 2017 · Q141 Mark

The following account appeared in a trader's ledger. [Figure of Provision for depreciation of machinery account] There were no sales or purchases of machinery during the two year period. What does the $5100 on 1 January 2017 represent?

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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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Topic: Accounting procedures, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, May/June 2017 Paper 1 Variant 2, question 14.

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