A-LevelAccountingDepreciation and Disposal of Non-Current AssetsOct/Nov 2021Paper 1 Q31 Mark
A business has a financial year end of 31 December. It depreciates its machinery on a month-by-month basis. It uses the straight-line method at 10% per annum. It bought a machine, cost $12000, on 1 January 2019 and sold it on 31 March 2020. Which entries relating to this machine were made in the provision for depreciation of machinery account for the year ended 31 December 2020?
A300 (debit), 1500 (credit)
Bno entry (debit), 1200 (credit)
C1200 (debit), no entry (credit)
D1500 (debit), 300 (credit)
✓ Correct Answer
The correct answer is D. This question tests the candidate's understanding of depreciation and disposal 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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