Neco Model Questions Vol1 2024 Financial Accounting Question 25
Practice objective / multiple choice question 25 from the 2024 Neco Model Questions Vol1 Financial Accounting examination.
At year‑end the company must record depreciation on equipment costing ₦120,000. The equipment has a useful life of 8 years, no salvage value, and is depreciated on a straight‑line basis. The company had previously recorded depreciation of ₦10,000 for the year (which is incorrect). In addition, an accrued salary expense of ₦9,600 for the last month of the year is recognised. Prepare the adjusting journal entries required to correct depreciation and to record the accrued salaries, and state the net increase in the total debit side of the trial balance after posting these entries.
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About This Question
This is Neco Model Questions Vol1 2024 Financial Accounting Question 25. It is one of the objective questions from the 2024 Neco Model Questions Vol1 Financial Accounting examination.
Difficulty level: Medium .
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