WAEC Accounting 2019 Objective — Question 48

Question 48 of 50 from the West African Examinations Council (WAEC) Accounting 2019 Objective paper, with the correct answer and a full explanation.

(A firm bought lathe machine for Le 45,600 on 1st January, 2015. The life span was estimated to be 20 years while scrap at the end of the period was valued at Le 1,600. It was to be depreciated by fixed instalment method.) The depreciation per annum is

A. Le 2,360
B. Le 2280
C. Le 2,200Correct
D. Le 1,600.09

Explanation

Depreciation per annum = (Cost - Scrap value)/Estimated useful life = (Le45,600-Le1,600)/20 = Le44,000/20 = Le2,200.

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