Accounting Questions and Answers

Use the following information to answer the given question,

\(\begin{array}{c|c} & N\\ \hline \text{Purchase price of equipment} & 60,000\\ \text{Freight and installation cost} & 10,000 \\ \text{Annual maintenance cost} & 1,000\\ \text{Estimated useful life - 5 years} & \\ \text{Estimated scrap value} & 2000 \end{array}\)

What is the annual depreciation charge of straight line method is used?

Use the following information to answer the given question,

\(\begin{array}{c|c} & N\\ \hline \text{Purchase price of equipment} & 60,000\\ \text{Freight and installation cost} & 10,000 \\ \text{Annual maintenance cost} & 1,000\\ \text{Estimated useful life - 5 years} & \\ \text{Estimated scrap value} & 2000 \end{array}\)

What is the total acquisition cost of the equipment?

\(\begin{array}{c|c} \text{Capital} & 12,700 & \text{Purchases} & 7,100 \\ \hline \text{Debtors} & 4,000 & \text{Stationery} & 1,900 \\ \hline \text{Sales} & 2,400 & \text{Wages} & 1,230 \\ \end{array}\)

Determine the closing balance of the cash book?

\(\begin{array}{c|c} \text{Cost of motor vehicle - 1\1\12} & ₦ 85,000 \\ \text{Residual value} & ₦5,000 \\ \text{Estimated useful lifespan 10 years} & \end{array}\).
The business make use of the straight line method for providing depreciation, the annual depreciation is

\(\begin{array}{c|c} Capital & Le\\ Aye & 20,000\\ Bee & 30,000\\ Drawings & \\ Aye & 8,000 \\ Bee & 2,000 \\ \text{Profit for the year} & 2,000\\ \{text{Interest on capital-6%} & \\ \text{Interest on drawings - 10%} & \end{array}\)

Profit sharing is in the ratio of capital. Bee's share of profit is