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7 marksDepreciation and Capital versus Revenue Expenditure

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

The owner agreed that the reducing balance method should be used.

Calculate the amount that should appear in the Provision for Depreciation Account as at 31 August 2016 using the reducing balance method.

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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(a)(ii)Name the accounting principle that was NOT being followed by the company.[1 mark]
  3. 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]
  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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