Provision For Depreciation Using Straight Line And Reducing Balance Methods - Accountsprinciplesofaccounts Jamb Past Questions and Answers

Question 16 :

• JAMB 2013

A machine bought for #35,000 was estimated to have a life span of 5 years with a scrap value of #9,000.
If the scrap value is presently #15,000 what will be the yearly depreciation using straight line method?

A. #4,000
B. #7,000
C. #11,000
D. #24,000

Question 17 :

• JAMB 2014

If machine X cost #600,000 with anticipated life span of five years and estimated scrap value of #50,000, using straight line method; depreciation charged for two years will be

A. #700,000
B. #240,000
C. #220,000
D. #202,000

Question 18 :

• JAMB 2014

The formula for calculating depreciation using straight line method is

A. \( \frac{\text{Scrape Value} + \text{Sales}}{Useful life} \)
B. \( \frac{\text{Cost } - \text{Scrape Value}}{Useful life} \)
C. \( \frac{\text{Sales } - \text{Scrape Value}}{Useful life} \)
D. \( \frac{\text{Purchases } + \text{Sales }}{Useful life} \)

Question 19 :

• JAMB 2015

The ware and tear of a fixed assets of a company which is chargeable to company’s financial statement is called ------------------------------

A. Appreciation
B. Amortization
C. Provisions
D. Depreciation

Question 20 :

• JAMB 2016

Use the information below to answer the question that follows,A machine bought for N35,000 was estimated to have a life span of 5years with a scrap value of N9,000.


If the scrap value is now N15,000. What will be the yearly depreciation using the straight line method.?

A. N11,000
B. N7,000
C. N4,000
D. N24,000