Gce Model Questions Vol1 2021 Financial Accounting Question 22

Practice objective / multiple choice question 22 from the 2021 Gce Model Questions Vol1 Financial Accounting examination.

Gce Model Questions Vol1 2021 Financial Accounting Objective / Multiple Choice Easy Difficulty
Question 22 GCE_MODEL_QUESTIONS_VOL1 • 2021 • FINANCIAL_ACCOUNTING • objective

At the end of the financial year, XYZ Ltd's machinery has a carrying amount of \(\text{₦}500,000\). The estimated residual value is \(\text{₦}50,000\) and the useful life remaining is 5 years on a straight‑line basis. No depreciation has yet been charged for the year. Record the adjusting journal entry required to recognise depreciation for the year.

Answer Options

Correct Answer A. Debit Depreciation Expense \(\text{₦}90,000\)\nCredit Accumulated Depreciation - Machinery \(\text{₦}90,000\)
B. Debit Depreciation Expense (₦100,000) Credit Accumulated Depreciation - Machinery (₦100,000)
C. Debit Depreciation Expense (₦112,500) Credit Accumulated Depreciation - Machinery (₦112,500)
D. Debit Depreciation Expense (₦75,000) Credit Accumulated Depreciation - Machinery (₦75,000)
Correct Answer
A
Correct Option:
Debit Depreciation Expense \(\text{₦}90,000\)\nCredit Accumulated Depreciation - Machinery \(\text{₦}90,000\)

About This Question

This is Gce Model Questions Vol1 2021 Financial Accounting Question 22. It is one of the objective questions from the 2021 Gce Model Questions Vol1 Financial Accounting examination.

Difficulty level: Easy .

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