Gce Model Questions Vol1 2017 Financial Accounting Question 39
Practice objective / multiple choice question 39 from the 2017 Gce Model Questions Vol1 Financial Accounting examination.
On 1 January a company bought equipment for ₦50,000. The company depreciates the equipment straight‑line over 5 years with no residual value, transferring the annual depreciation charge to a Depreciation Reserve account. On 30 June the company incurred a repair expense of ₦4,000, but the amount was mistakenly posted to the Depreciation Reserve instead of the Repairs Account. Determine the correct closing balances on 31 December of:\n\n- the Equipment Account,\n- the Depreciation Reserve, and\n- the Repairs Account,\n\nafter correcting the posting error.
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About This Question
This is Gce Model Questions Vol1 2017 Financial Accounting Question 39. It is one of the objective questions from the 2017 Gce Model Questions Vol1 Financial Accounting examination.
Difficulty level: Medium .
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