JAMB Accounting 2020 Objective — Question 11
Question 11 of 40 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2020 Objective paper, with the correct answer and a full explanation.
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Use the following information to answer question 11 and 12: ABC ltd purchase a machine worth N6500 on 1st of January 19x0. If the netbook value of all machines is at same date is N40,000 with accumulated depreciation of N11,300. The expected life span of all machines is 5 years. 11. What is the accumulated depreciation as at year end?
- A. A. N12,600
- B. B. N11,560
- C. C. N22,860Correct
- D. D. N10,260
Explanation
Depreciation of the new machine = 6,500/5 = N1,300. Depreciation per year on old machines = 51,300/5 = N10,260 (NBV of old machines = 40,000+11,300 = 51,300). Total accumulated depreciation = 11,300+10,260+1,300 = N22,860.
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