Cost of the asset$100,000
Life of the asset 5 years
Depreciation rate20%
Capital cost allowance rate 50%
Residual value of the asset nil
Income tax rate 50%
-What is the name for the books of original entry?
A) journals
B) T accounts
C) trial balance accounts
D) ledgers

Question

Cost of the asset$100,000 
Life of the asset 5 years 
Depreciation rate20% 
Capital cost allowance rate 50% 
Residual value of the asset nil 
Income tax rate 50%
-What is the name for the books of original entry?
A) journals
B) T accounts
C) trial balance accounts
D) ledgers

Quizplus · Accepted Answer

Journals are the books of original entry where transactions are first recorded before they are posted to ledgers.

Cost of the Asset$100,000