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

Question 21 :

• JAMB 2018

A machine bought for N35,000 was estimated to have a life span of 5 years with a scrap value of N9,000.


If the scrap value is presently N15,000, what will be the yearly depreciation using the straight line method?

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

Question 22 :

• JAMB 2018

A machine bought for N35,000 was estimated to have a life span of 5 years with a scrap value of N9,000.


The yearly depreciation using the straight line method would be

A. N8,800
B. N6,500
C. N5,200
D. N4,400

Question 23 :

• JAMB 2019

A fall or decrease in the economic service potential of an asset as a result of wear, tear and obsolescence is referred to as

A. Estimate
B. Depreciation
C. Asset
D. Useful Life

Question 24 :

• 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 25 :

• JAMB 2019

Which of the following cannot depreciate?

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