Motor Vehicle – NBC Institute

FA – May 2022 – L1 – SB – Q2c – Depreciation Methods and Accounting for Disposals

Calculate depreciation for a motor vehicle using both the straight-line and reducing balance methods.

Question

On January 1, 2017, Jos Limited acquired a motor vehicle for ₦4,500,000. The estimated useful life of the motor vehicle is four years, and its residual value at the end of the useful life is ₦300,000.

Required:
Calculate the depreciation charged for the first two years using:
(i) The straight-line method (4 Marks)
(ii) The reducing balance method (4 Marks)

Answer

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Tags: Depreciation, Motor Vehicle, Reducing Balance Method, Straight-Line Method
Level: Level 1

Topic: Depreciation Methods and Accounting for Disposals
Series: MAY 2022

FA – MAY 2015 – L1 – SA – Q3 – Correction of Errors

Determine the journal entries to correct an error involving telephone and motor vehicle expenses.

Question

A draft financial statement of DS Enterprises revealed that an amount of N10,000 expended on repairs of telephone was recorded as motor vehicle expenses. State the entries to reverse this error.
A. Dr. Motor vehicle expenses account, Cr. Telephone expenses account
B. Dr. Telephone expenses account, Cr. Suspense account
C. Dr. Motor vehicle account, Cr. Suspense account
D. Dr. Telephone expenses account, Cr. Motor vehicle expenses account
E. Dr. Suspense account, Cr. Telephone expenses account

Answer

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Tags: Correction of Errors, Motor Vehicle, Telephone Expenses
Level: Level 1

Topic: Correction of errors
Series: MAY 2015

FA – MAY 2015 – L1 – SA – Q2 – Depreciation Methods and Accounting for Disposals

Determine the second-year depreciation using the sum-of-the-years-digits method.

Question

On 1 January 2013, a motor vehicle with an expected useful life span of 5 years and a residual value of N100,000 was acquired for N1,600,000. Using the sum-of-the-years-digits method, what is the second-year depreciation provision of the motor vehicle?
A. N400,000
B. N426,000
C. N530,000
D. N540,000
E. N600,000

Answer

Find Related Questions by Tags, levels, etc.

Tags: Depreciation, Motor Vehicle, Sum-of-the-Years-Digits
Level: Level 1

Topic: Depreciation Methods and Accounting for Disposals
Series: MAY 2015

FA – May 2022 – L1 – SB – Q2c – Depreciation Methods and Accounting for Disposals

Calculate depreciation for a motor vehicle using both the straight-line and reducing balance methods.

Question

Required:
Calculate the depreciation charged for the first two years using:
(i) The straight-line method (4 Marks)
(ii) The reducing balance method (4 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Depreciation, Motor Vehicle, Reducing Balance Method, Straight-Line Method
Level: Level 1

Topic: Depreciation Methods and Accounting for Disposals
Series: MAY 2022

FA – MAY 2015 – L1 – SA – Q3 – Correction of Errors

Determine the journal entries to correct an error involving telephone and motor vehicle expenses.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Correction of Errors, Motor Vehicle, Telephone Expenses
Level: Level 1

Topic: Correction of errors
Series: MAY 2015

FA – MAY 2015 – L1 – SA – Q2 – Depreciation Methods and Accounting for Disposals

Determine the second-year depreciation using the sum-of-the-years-digits method.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Depreciation, Motor Vehicle, Sum-of-the-Years-Digits
Level: Level 1

Topic: Depreciation Methods and Accounting for Disposals
Series: MAY 2015

Question Tag: Motor Vehicle

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FA – May 2022 – L1 – SB – Q2c – Depreciation Methods and Accounting for Disposals

Calculate depreciation for a motor vehicle using both the straight-line and reducing balance methods.

FA – MAY 2015 – L1 – SA – Q3 – Correction of Errors

Determine the journal entries to correct an error involving telephone and motor vehicle expenses.

FA – MAY 2015 – L1 – SA – Q2 – Depreciation Methods and Accounting for Disposals

Determine the second-year depreciation using the sum-of-the-years-digits method.

FA – May 2022 – L1 – SB – Q2c – Depreciation Methods and Accounting for Disposals

Calculate depreciation for a motor vehicle using both the straight-line and reducing balance methods.

FA – MAY 2015 – L1 – SA – Q3 – Correction of Errors

Determine the journal entries to correct an error involving telephone and motor vehicle expenses.

FA – MAY 2015 – L1 – SA – Q2 – Depreciation Methods and Accounting for Disposals

Determine the second-year depreciation using the sum-of-the-years-digits method.

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FA – May 2022 – L1 – SB – Q2c – Depreciation Methods and Accounting for Disposals

Calculate depreciation for a motor vehicle using both the straight-line and reducing balance methods.

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FA – MAY 2015 – L1 – SA – Q3 – Correction of Errors

Determine the journal entries to correct an error involving telephone and motor vehicle expenses.

You're reporting an error for "FA – MAY 2015 – L1 – SA – Q3 – Correction of Errors"

FA – MAY 2015 – L1 – SA – Q2 – Depreciation Methods and Accounting for Disposals

Determine the second-year depreciation using the sum-of-the-years-digits method.

You're reporting an error for "FA – MAY 2015 – L1 – SA – Q2 – Depreciation Methods and Accounting for Disposals"

FA – May 2022 – L1 – SB – Q2c – Depreciation Methods and Accounting for Disposals

Calculate depreciation for a motor vehicle using both the straight-line and reducing balance methods.

You're reporting an error for "FA – May 2022 – L1 – SB – Q2c – Depreciation Methods and Accounting for Disposals"

FA – MAY 2015 – L1 – SA – Q3 – Correction of Errors

Determine the journal entries to correct an error involving telephone and motor vehicle expenses.

You're reporting an error for "FA – MAY 2015 – L1 – SA – Q3 – Correction of Errors"

FA – MAY 2015 – L1 – SA – Q2 – Depreciation Methods and Accounting for Disposals

Determine the second-year depreciation using the sum-of-the-years-digits method.

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