Use the information below to answer questions 6 to 9
A Furniture Manufacturing Company commence
business on 1st August, 2022, preparing
account to 315
October each year. Oliver Twist, the
accountant of th-
business has provided you with the
below information
for the year ended 31st October, 2022.
All fixed asse
are depreciated at a rate of 6% per annum.
Plywood
Furniture
Motor Vehicle
GHS
120,000
840,000
420,000
1,200,000
6. Determine the amount of depreciation charged to
manufacturing, profit or loss account for the year
ended 31st October, 2022.
A. GHS 63,000
B. GHS 36,000
C. GHS 6,300
D. GHS 3,600
7. Plywood is a/an....
A. Trading Stock
B. Raw material
C. Non-current Asset
D. Inventory
8. The cost of furniture should be treated in the...
A. Fixed Asset Account
B. Profit or Loss Account
C. Trading Account
D. Manufacturing Account
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