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

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

Manjit charges depreciation on her motor vehicles by $1000 at the end of every financial year. Which journal entry should Manjit record at the end of each financial year?

  • ADebit income statement $1000; Credit provision for depreciation of motor vehicles $1000
  • BDebit motor vehicles $1000; Credit provision for depreciation of motor vehicles $1000
  • CDebit provision for depreciation of motor vehicles $1000; Credit income statement $1000
  • DDebit provision for depreciation of motor vehicles $1000; Credit motor vehicles $1000

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