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

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

Rashid gave the following details at 31 December. Machinery recorded 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 prepared, it was discovered that machinery repairs costing $\$2000$ had been entered to the debit of the machinery account. 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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