Accounts (Principles of Accounts)Depreciation of non-current assetsJAMB
A van bought for ₦1,200,000 had accumulated depreciation of ₦700,000 when it was sold for ₦450,000. The result on disposal is
Show answer
Answer: B. a loss of ₦50,000
Net book value 1,200,000 − 700,000 = 500,000; sold for 450,000, so a loss of ₦50,000.
An AdmitMe practice question, written for the JAMB syllabus. Not an official past question.