Neco Model Questions Vol1 2021 Financial Accounting Question 31
Practice objective / multiple choice question 31 from the 2021 Neco Model Questions Vol1 Financial Accounting examination.
A company's trial balance for the year ended 31 December shows the following items (in ₦): Sales 1,200,000; Opening stock 150,000; Purchases 720,000; Closing stock 180,000; Salaries 120,000; Rent 80,000; Interest expense 30,000; Tax expense 60,000; Depreciation on plant (cost ₦500,000) is charged on a reducing‑balance basis at an unknown rate (r)% . The opening net book value of the plant is ₦500,000 and the closing net book value is unknown. The net profit after tax reported in the trial balance is ₦150,000. Determine the depreciation rate (r) (to the nearest whole percent).
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About This Question
This is Neco Model Questions Vol1 2021 Financial Accounting Question 31. It is one of the objective questions from the 2021 Neco Model Questions Vol1 Financial Accounting examination.
Difficulty level: Medium .
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