WAEC Accounting 2023 Paper

Concept:Sum-of-the-years'-digits depreciation uses the fraction $\frac{\text{remaining useful life}}{\text{sum of the years' digits}}$ applied to the depreciable amount.Explanation:Useful life is 4 years.Sum of years' digits $= 1 + 2 + 3 + 4 = 10$.For the third year, the remaining useful life at the start is 2 years.So the third-year fraction is $\frac{2}{10}$.The options are consistent with an intended cost of $\text{NGN}\,12{,}000$, not the printed $\text{NGN}120{,}000$.Depreciable amount $= 12{,}000 - 2{,}000 = 10{,}000$.Third-year depreciation $= \frac{2}{10} \times 10{,}000 = 2{,}000$.Therefore, the depreciation charged in the third year is $\text{NGN}\,2{,}000$.If the printed cost of $\text{NGN }120{,}000$ is taken literally, the depreciation would be $\text{NGN }23{,}600$, which is not among the options.Answer:D. $\text{NGN 2,000}$