A-LevelAccountingNon-current AssetsOct/Nov 2018Paper 1 Q31 Mark
A trader purchased a motor vehicle costing $36000 on 1 July 2016. The estimated useful life of the motor vehicle was five years and the estimated residual value was $6000. Depreciation is provided on a month-by-month basis using the straight-line method. The motor vehicle was sold on 31 March 2018 for $22500. What was the profit or loss on disposal of the motor vehicle?
A$900 loss
B$900 profit
C$3000 loss
D$3000 profit
✓ Correct Answer
The correct answer is C. This question tests the candidate's understanding of non-current assets within the Accountingsyllabus. The examiner's mark scheme requires...
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
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