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

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

At 31 December, Rashid gave the following figures: machinery at cost $52\,000$, provision for depreciation of machinery $23\,000$. Depreciation for the year is worked out at $20\%$ on cost. Once the statement of financial position had been drawn up, it was discovered that machinery repairs costing $2000$ had been entered in the machinery account as a debit. What is the correct balance in the provision for the depreciation of machinery account?

  • A$21\,000$
  • B$22\,600$
  • C$23\,400$
  • D$25\,000$

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