Adjustments - Jamb Accounts - Principles of Accounts Past Questions and Answers

Question 66:

• JAMB 2019

The cost of a machine is ₦10,000. The residual value is ₦4,000. It is expected to last for 4 years. Using the straight line method, what is the amount of depreciation charged per annum?

A. 6000
B. 1000
C. 1500
D. 2500

Question 67:

• JAMB 2019

Use the information to answer this question
Payment to creditors ₦12,250
Creditors at start ₦550
Creditors at end ₦830
What is the creditors amount in the balance sheet?

A. ₦550
B. ₦12,250
C. ₦12,530
D. ₦830

Question 68:

• JAMB 2019

Which of the following cannot depreciate?

A. Plant and machinery
B. Motor van
C. Premises
D. Land

Question 69:

• JAMB 2019

A machine cost ₦12,500 it will be kept for 4 years and then sold at a scrap value of ₦5,120. Using the diminishing balance method, what is the amount of depreciation for second year?

A. ₦5,120
B. ₦6,400
C. ₦8,000
D. ₦12,500

Question 70:

• JAMB 2021

The formular for calculating depreciation using straight line method is


A. Cost-scrap value/useful life
B. Scrap value+sales/useful life
C. Sales-scrap value/useful life
D. Purshases+sales/useful life