Accounts - Principles of Accounts Past Questions and Answers

John brought in an additional plant into his business. What are the accounting entries necessary to reflect the transaction?

A Debit plant account, credit current account
B Debit current account, credit plant account
C Credit plannt account, credit profit and loss account
D Debit profit and loss account, credit plant account
E Debit plant account, credit capital account

Question 1547:

Patent and Trade mark are classified under

A Fixed assets
B Current assets
C Intangible assets
D Wasting assets
E Investments

Question 1548:

A machine bought for N7,000 was estimated to have a useful life of 4 years and a scrap value of N500. Using the straight line method, what was the amount of depreciation charged per annum?

A N1,313
B N1,406
C N1,625
D N1,750
E N1,875

Question 1549:

A machine bought for N7,000 was estimated to have a useful life of 4 years and a scrap value of N500, Using the reducing balance method, what is the amount of depreciation for the second year?

A N1,313
B N1,4066
C N1,625
D N1,750
E N1,875

Question 1550:

A machine bought for N7,000 was estimated to have a useful life of 4 years and a scrap value of N500. What is the Net book value of the machine at the end of the second year, Using the straight line method

A N3,250
B N3,562
C N3,656
D N3,750
E N4,062