Straight-Line Method – NBC Institute

FA – Nov 2013 – L1 – SA – Q39 – Accounting Concepts

Calculating annual depreciation using the straight line method.

Question

The information below relates to the plant and machinery account of Perfect Fit Designers for the year ended 31 December 2012:

What should be the amount of depreciation charged to the income statement during the year if the plant and machinery were depreciated at 20% per annum on a straight line basis?

Answer

Find Related Questions by Tags, levels, etc.

Tags: Depreciation, Plant and Machinery, Straight-Line Method
Level: Level 1

Topic: Accounting Concepts
Series: NOV 2013

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

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 2022 – L1 – SA – Q4 – Accounting for Property, Plant, and Equipment (PPE) in Accordance with IAS 16

Calculate the amount of depreciation charged for the year after adjusting the useful life of an asset.

Question

What is the amount of depreciation charged in 2018 after adjusting the useful life of the plant as described in Q3?

A. ₦30,000
B. ₦52,500
C. ₦60,000
D. ₦67,500
E. ₦80,000

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Estimate, Depreciation, Plant, Straight-Line Method
Level: Level 1

Topic: Accounting for Property, Plant, and Equipment (PPE) IAS 16
Series: MAY 2022

FA – May 2021 – L1 – SA – Q9 – Depreciation Methods and Accounting for Disposals

Calculate annual depreciation expense after revising useful life.

Question

Daoda purchased a piece of equipment for ₦930,000 on 1 September 2014. Depreciation was charged at 12.5% per annum on a straight-line basis from the date of purchase to 1 September 2018. The remaining useful life of the equipment was reviewed to 5 years at this date. The estimated residual value of the equipment was zero.

Calculate the amount of depreciation charged to the statement of profit or loss in respect of the equipment for the year ended 31 August 2019.

A. ₦23,250
B. ₦93,000
C. ₦103,333
D. ₦104,625
E. ₦114,000

Answer

Find Related Questions by Tags, levels, etc.

Tags: Asset Disposal, Depreciation, Straight-Line Method
Level: Level 1

Topic: Depreciation Methods and Accounting for Disposals
Series: MAY 2021

FA – May 2024 – L1 – SB – Q4b and c- Depreciation Methods and Accounting for Disposals

Prepares ledger accounts for the first three years using straight-line and reducing balance depreciation methods.

Question

b. Buma Limited recently acquired a piece of equipment for ₦1,600,000. The equipment has an estimated useful life of 5 years with no residual value. The company estimates the rates of depreciation under the straight-line method to be 20% and the reducing balance method to be 30%. It is still considering which of the two depreciation methods to adopt and requires ledger records to make a final decision.

Required:

i. Present the ledger accounts to record the transaction for the first three years using the straight-line method. (6 Marks)

ii. Present the ledger accounts to record the transaction for the first three years using the reducing balance method. (6 Marks)

c. Show the extracts from the statement of financial position at the end of the third year for the two methods. (3 Marks)

Answer

Find Related Questions by Tags, levels, etc.

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

Topic: Depreciation Methods and Accounting for Disposals
Series: MAY 2024

FA – Nov 2013 – L1 – SA – Q39 – Accounting Concepts

Calculating annual depreciation using the straight line method.

Question

The information below relates to the plant and machinery account of Perfect Fit Designers for the year ended 31 December 2012:

What should be the amount of depreciation charged to the income statement during the year if the plant and machinery were depreciated at 20% per annum on a straight line basis?

Answer

Find Related Questions by Tags, levels, etc.

Tags: Depreciation, Plant and Machinery, Straight-Line Method
Level: Level 1

Topic: Accounting Concepts
Series: NOV 2013

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 2022 – L1 – SA – Q4 – Accounting for Property, Plant, and Equipment (PPE) in Accordance with IAS 16

Calculate the amount of depreciation charged for the year after adjusting the useful life of an asset.

Question

What is the amount of depreciation charged in 2018 after adjusting the useful life of the plant as described in Q3?

A. ₦30,000
B. ₦52,500
C. ₦60,000
D. ₦67,500
E. ₦80,000

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Estimate, Depreciation, Plant, Straight-Line Method
Level: Level 1

Topic: Accounting for Property, Plant, and Equipment (PPE) IAS 16
Series: MAY 2022

FA – May 2021 – L1 – SA – Q9 – Depreciation Methods and Accounting for Disposals

Calculate annual depreciation expense after revising useful life.

Question

Calculate the amount of depreciation charged to the statement of profit or loss in respect of the equipment for the year ended 31 August 2019.

A. ₦23,250
B. ₦93,000
C. ₦103,333
D. ₦104,625
E. ₦114,000

Answer

Find Related Questions by Tags, levels, etc.

Tags: Asset Disposal, Depreciation, Straight-Line Method
Level: Level 1

Topic: Depreciation Methods and Accounting for Disposals
Series: MAY 2021

FA – May 2024 – L1 – SB – Q4b and c- Depreciation Methods and Accounting for Disposals

Prepares ledger accounts for the first three years using straight-line and reducing balance depreciation methods.

Question

Required:

i. Present the ledger accounts to record the transaction for the first three years using the straight-line method. (6 Marks)

ii. Present the ledger accounts to record the transaction for the first three years using the reducing balance method. (6 Marks)

c. Show the extracts from the statement of financial position at the end of the third year for the two methods. (3 Marks)

Answer

Find Related Questions by Tags, levels, etc.

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

Topic: Depreciation Methods and Accounting for Disposals
Series: MAY 2024

Question Tag: Straight-Line Method

Filter by Professional Bodies

Filter by Subject

Filter by Series

Filter by Topics

Filter by Levels

FA – Nov 2013 – L1 – SA – Q39 – Accounting Concepts

Calculating annual depreciation using the straight line 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 2022 – L1 – SA – Q4 – Accounting for Property, Plant, and Equipment (PPE) in Accordance with IAS 16

Calculate the amount of depreciation charged for the year after adjusting the useful life of an asset.

FA – May 2021 – L1 – SA – Q9 – Depreciation Methods and Accounting for Disposals

Calculate annual depreciation expense after revising useful life.

FA – May 2024 – L1 – SB – Q4b and c- Depreciation Methods and Accounting for Disposals

Prepares ledger accounts for the first three years using straight-line and reducing balance depreciation methods.

FA – Nov 2013 – L1 – SA – Q39 – Accounting Concepts

Calculating annual depreciation using the straight line 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 2022 – L1 – SA – Q4 – Accounting for Property, Plant, and Equipment (PPE) in Accordance with IAS 16

Calculate the amount of depreciation charged for the year after adjusting the useful life of an asset.

FA – May 2021 – L1 – SA – Q9 – Depreciation Methods and Accounting for Disposals

Calculate annual depreciation expense after revising useful life.

FA – May 2024 – L1 – SB – Q4b and c- Depreciation Methods and Accounting for Disposals

Prepares ledger accounts for the first three years using straight-line and reducing balance depreciation methods.

Our offerings

Contact Info

Customer

Get In Touch

Question Tag: Straight-Line Method

Filter by Professional Bodies

Filter by Subject

Filter by Series

Filter by Topics

Filter by Levels

FA – Nov 2013 – L1 – SA – Q39 – Accounting Concepts

Calculating annual depreciation using the straight line method.

You're reporting an error for "FA – Nov 2013 – L1 – SA – Q39 – Accounting Concepts"

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 2022 – L1 – SA – Q4 – Accounting for Property, Plant, and Equipment (PPE) in Accordance with IAS 16

Calculate the amount of depreciation charged for the year after adjusting the useful life of an asset.

You're reporting an error for "FA – May 2022 – L1 – SA – Q4 – Accounting for Property, Plant, and Equipment (PPE) in Accordance with IAS 16"

FA – May 2021 – L1 – SA – Q9 – Depreciation Methods and Accounting for Disposals

Calculate annual depreciation expense after revising useful life.

You're reporting an error for "FA – May 2021 – L1 – SA – Q9 – Depreciation Methods and Accounting for Disposals"

FA – May 2024 – L1 – SB – Q4b and c- Depreciation Methods and Accounting for Disposals

Prepares ledger accounts for the first three years using straight-line and reducing balance depreciation methods.

You're reporting an error for "FA – May 2024 – L1 – SB – Q4b and c- Depreciation Methods and Accounting for Disposals"

FA – Nov 2013 – L1 – SA – Q39 – Accounting Concepts

Calculating annual depreciation using the straight line method.

You're reporting an error for "FA – Nov 2013 – L1 – SA – Q39 – Accounting Concepts"

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 2022 – L1 – SA – Q4 – Accounting for Property, Plant, and Equipment (PPE) in Accordance with IAS 16

Calculate the amount of depreciation charged for the year after adjusting the useful life of an asset.

You're reporting an error for "FA – May 2022 – L1 – SA – Q4 – Accounting for Property, Plant, and Equipment (PPE) in Accordance with IAS 16"

FA – May 2021 – L1 – SA – Q9 – Depreciation Methods and Accounting for Disposals

Calculate annual depreciation expense after revising useful life.

You're reporting an error for "FA – May 2021 – L1 – SA – Q9 – Depreciation Methods and Accounting for Disposals"

FA – May 2024 – L1 – SB – Q4b and c- Depreciation Methods and Accounting for Disposals

Prepares ledger accounts for the first three years using straight-line and reducing balance depreciation methods.

You're reporting an error for "FA – May 2024 – L1 – SB – Q4b and c- Depreciation Methods and Accounting for Disposals"

Our offerings

Contact Info

Customer

Get In Touch

admin