GCE Accounting 2023 Objective — Question 15

Question 15 of 50 from the General Certificate of Education (GCE) Accounting 2023 Objective paper, with the correct answer and a full explanation.

Sammy acquired machinery costing #12,000 with an estimated useful life of 4 years and residual value of #2,000. The sum of the years' digits method is used. The depreciation to be charged for the third year will be (a) #4,000 (b) #3,000 (c) #2,000 (d) #1,000

A. #4,000
B. #3,000
C. #2,000Correct
D. #1,000

Explanation

Depreciable amount = 12,000 - 2,000 = 10,000; sum of years' digits = 4+3+2+1 = 10. Year 3 factor = 2/10, so depreciation = 2/10 x 10,000 = #2,000.

Sign up free to unlock

Score tracking
Practice history
Saved questions
Progress dashboard
Personalized sessions
Weak-topic breakdown

…and/or go further with premium services and No Ads.

Create free account

More questions from Accounting 2023 Objective More Accounting past papers