WAEC Accounting 2020 Paper

Concept:Profit on disposal is the difference between sale proceeds and net book value, where net book value equals cost minus accumulated depreciation.Explanation:First, find the net book value at the time of disposal.Net book value = Sale proceeds − Profit on disposal.So, Net book value = $\text{N}45,000 - \text{N}7,500 = \text{N}37,500$.Accumulated depreciation = Cost − Net book value.Therefore, Accumulated depreciation = $\text{N}150,000 - \text{N}37,500 = \text{N}112,500$.Answer:Accumulated depreciation at the time of disposal was $\text{N}112,500$.Option A.