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1 markAccounting Concepts and the Accounting Cycle

CSEC Principles of Accounts · January 2017 · Paper 2 · Question 4(a)(ii)

Warwreck Car Wrecking Company incorrectly depreciated its wrecking trucks using the straight-line method in year 1 and reducing balance method in year 2.

Name the accounting principle that was NOT being followed by the company.

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Other parts of this question

  1. 4(a)(i)Name the TWO financial statements which were affected by the depreciation method error.[2 marks]
  2. 4(b)(i)Calculate the balance which had been brought down in error in the Provision for Depreciation Account as at 1 September 2015 using the table provided.[5 marks]
  3. 4(b)(ii)Calculate the amount that should appear in the Provision for Depreciation Account as at 31 August 2016 using the reducing balance method.[7 marks]
  4. 4(b)(iii)Prepare the journal entry to correct this balance in Warwreck's owner's personal account, including the date and narrative.[5 marks]

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