Neco 2018 Financial Accounting Question 11
Practice objective / multiple choice question 11 from the 2018 Neco Financial Accounting examination.
The Machinery ledger shows an opening balance of \(150,000\) (debit). During the year a machine costing \(45,000\) was purchased on 1 May. Depreciation is charged at \(10\%\) per annum on cost, calculated for the full year on existing assets and for the portion of the year owned on new assets. On 30 June a machine with original cost \(30,000\) and accumulated depreciation \(18,000\) was sold for \(12,000\) cash. The opening accumulated depreciation balance was \(12,000\). Compute the closing balance of the Machinery (cost) account and the Accumulated Depreciation account at year‑end.
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About This Question
This is Neco 2018 Financial Accounting Question 11. It is one of the objective questions from the 2018 Neco Financial Accounting examination.
Difficulty level: Medium .
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