Accounting 0452 · IGCSE · Accounting for depreciation and disposal of non-current assets

Accounting for depreciation and disposal of non-current assets — practice question

Rashid supplied these balances as at 31 December: - machinery at cost: $52000 - provision for depreciation of machinery: $23000 Depreciation for the year was worked out at 20% of cost and this is already included in the provision balance. Once the balances had been extracted, it was discovered that machinery repairs costing $2000 had been posted in error to the machinery account. What is the adjusted balance on the provision for depreciation of machinery account?

  • A$21000
  • B$22600
  • C$23400
  • D$25000

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