O-LevelAccountingAccounting procedures7707/12 · May/June 2018 · Q121 Mark

Jon paid $18000 for machinery on 1 January 2016. He depreciated this asset using the diminishing (reducing) balance method at 5% per annum. What was the balance on the provision for depreciation account on 1 January 2018?

A$1755 credit

B$1755 debit

C$1800 credit

D$1800 debit

✓ Correct answer

A: $1755 credit

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Topic: Accounting procedures, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, May/June 2018 Paper 1 Variant 2, question 12.

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