Question

5. Alagba - Motor vehicles: LMN232AA 1/1/2019 N1,200,000; ABC151BB(AA) 30/6/2019 N620,000; BDK202LM(ABC) 1/3/2020 N1,350,000. Depreciation 20% straight line. Accounts up to 31 Dec 2022.

Accepted Answer

Workings | Calculation | Result (N)
1. Annual depreciation - LMN | 1,200,000 x 20% | 240,000
2. Annual depreciation - AA | 620,000 x 20% | 124,000
   Dep. for 1/7/2019-31/12/2019 (6/12) | 124,000 x 6/12 | 62,000
3. Annual depreciation - ABC | 1,350,000 x 20% | 270,000
   Dep. for 1/3/2020-31/12/2020 (10/12) | 270,000 x 10/12 | 225,000

(a) Motor Vehicle Account

Year | Debit side | N | Credit side | N
2019 | 1/1/2019 LMN 1,200,000; 30/6/2019 AA 620,000 | 1,820,000 | Balance c/d | 1,820,000
2020 | Balance b/d 1,820,000; 1/3/2020 ABC 1,350,000 | 3,170,000 | Balance c/d | 3,170,000
2021 | Balance b/d | 3,170,000 | Balance c/d | 3,170,000
2022 | Balance b/d | 3,170,000 | Balance c/d | 3,170,000

(b) Provision for Depreciation Account

Year | Debit side | N | Credit side (P&L depreciation charge) | N
2019 | Balance c/d | 302,000 | LMN 240,000 + AA 62,000 | 302,000
2020 | Balance c/d | 891,000 | B/d 302,000 + LMN 240,000 + AA 124,000 + ABC 225,000 | 891,000
2021 | Balance c/d | 1,525,000 | B/d 891,000 + LMN 240,000 + AA 124,000 + ABC 270,000 | 1,525,000
2022 | Balance c/d | 2,159,000 | B/d 1,525,000 + LMN 240,000 + AA 124,000 + ABC 270,000 | 2,159,000

(c) Profit and Loss Account (extract) - Depreciation charge for the year

Year | LMN (N) | AA (N) | ABC (N) | Total depreciation (N)
2019 | 240000 | 62000 | - | 302000
2020 | 240000 | 124000 | 225000 | 589000
2021 | 240000 | 124000 | 270000 | 634000
2022 | 240000 | 124000 | 270000 | 634000

(d) Balance Sheet (extract) - Cost, Accumulated Depreciation and Net Book Value

Year | Vehicle | Cost (N) | Accum. Dep. (N) | NBV (N)
2019 | LMN | 1200000 | 240000 | 960000
2019 | AA | 620000 | 62000 | 558000
2019 | Total | 1820000 | 302000 | 1518000
2020 | LMN | 1200000 | 480000 | 720000
2020 | AA | 620000 | 186000 | 434000
2020 | ABC | 1350000 | 225000 | 1125000
2020 | Total | 3170000 | 891000 | 2279000
2021 | LMN | 1200000 | 720000 | 480000
2021 | AA | 620000 | 310000 | 310000
2021 | ABC | 1350000 | 495000 | 855000
2021 | Total | 3170000 | 1525000 | 1645000
2022 | LMN | 1200000 | 960000 | 240000
2022 | AA | 620000 | 434000 | 186000
2022 | ABC | 1350000 | 765000 | 585000
2022 | Total | 3170000 | 2159000 | 1011000

WAEC Accounting 2025 Theory — Question 7

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