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WAEC Accounting 2022 Objective — Question 19

Question 19 of 50 from the West African Examinations Council (WAEC) Accounting 2022 Objective paper, with the correct answer and a full explanation.

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The profit or loss on disposal of the machine was

  • A. D320,000 loss
  • B. D280,000 profit
  • C. D92,680 profitCorrect
  • D. D87,480 loss

Explanation

NBV at disposal = 874,800 − 87,480 = 787,320. Profit on disposal = Sale price − NBV = 880,000 − 787,320 = D92,680 profit.

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