Test Index

WAEC Accounting 2021 Paper

Question : 42

Total: 50

Solution:

Concept:

Reducing-balance depreciation is charged on the net book value at the start of each year, not on the original cost.

Explanation:

Cost of assets as at 01/01/2018 is ₦600,000.

Depreciation for 2018:

600{,}000 \times 15\% = \text{N}90{,}000

Net book value on 31/12/2018:

600{,}000 - 90{,}000 = \text{N}510{,}000

Depreciation for 2019:

510{,}000 \times 15\% = \text{N}76{,}500

Net book value on 31/12/2019:

510{,}000 - 76{,}500 = ₦433{,}500

Answer:

₦433,500 (Option C).

Go to Question:

Prev Question

Next Question