Neco Model Questions Vol1 2021 Financial Accounting Question 39
Practice objective / multiple choice question 39 from the 2021 Neco Model Questions Vol1 Financial Accounting examination.
The Machinery ledger account of a company shows an opening debit balance of N250,000. During the year the following transactions were posted: 1. Purchase of new machinery for N80,000 on 1 March. 2. Sale of an old machine on 15 July for cash N30,000. The original cost of the sold machine was N20,000 and its accumulated depreciation at the date of sale was N12,000. 3. Depreciation charged at \(10\%\) per annum on the closing balance of machinery (excluding the machine sold) calculated on a straight‑line basis, assuming a useful life of 5 years with no residual value. No other entries were made. Determine the balance (debit or credit) and amount shown in the Machinery account at the end of the year.
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About This Question
This is Neco Model Questions Vol1 2021 Financial Accounting Question 39. It is one of the objective questions from the 2021 Neco Model Questions Vol1 Financial Accounting examination.
Difficulty level: Medium .
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