Neco Model Questions Vol1 2025 Financial Accounting Question 49
Practice objective / multiple choice question 49 from the 2025 Neco Model Questions Vol1 Financial Accounting examination.
The Machinery ledger account for the year ended 31 December 2025 contains the following entries:\n\nOpening balance (debit): \(\text{₦}150,000\)\n10 March - Purchase of new machinery: \(\text{₦}45,000\)\n5 September - Sale of old machinery for cash: \(\text{₦}20,000\)\nDepreciation charged at 10 % per annum on straight‑line basis for the whole year.\nTransfer to Accumulated Depreciation (contra) account: \(\text{₦}5,000\)\n\nAssuming the machinery sold was written off at its book value, determine the closing balance (net book value) of the Machinery account at year‑end.
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This is Neco Model Questions Vol1 2025 Financial Accounting Question 49. It is one of the objective questions from the 2025 Neco Model Questions Vol1 Financial Accounting examination.
Difficulty level: Medium .
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