Neco 2019 Financial Accounting Question 4
Practice objective / multiple choice question 4 from the 2019 Neco Financial Accounting examination.
The Machinery account (debit side) had an opening balance of \(\text{₦}200,000\) on 1 January. During the year the following transactions occurred:\n1. Purchase of new machinery on 1 March costing \(\text{₦}80,000\), paid cash.\n2. The machinery is depreciated on a straight‑line basis over 5 years with no residual value.\n3. On 30 June the old machinery that formed part of the opening balance (cost \(\text{₦}120,000\)) was sold for \(\text{₦}50,000\) cash.\n4. Wages and other cash expenses of \(\text{₦}30,000\) were paid during the year.\nAssuming depreciation is charged to the Machinery account, determine the balance of the Machinery account as at 31 December.
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About This Question
This is Neco 2019 Financial Accounting Question 4. It is one of the objective questions from the 2019 Neco Financial Accounting examination.
Difficulty level: Medium .
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