A-LevelAccountingNon-Current Assets and DepreciationOct/Nov 2022Paper 1 Q31 Mark

A company purchased a new vehicle for $30000. It part-exchanged an existing vehicle at a value of $6500, with the balance being paid by cheque. The part-exchanged vehicle originally cost $12000 and had a net book value of $4800 on disposal. Which entries will be made in the accounts?

Q: What topic does this question test?

This question tests Non-Current Assets and Depreciation in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Aincome statement: $1700 income; bank account: motor vehicle at cost $23500 credit

Bincome statement: $1700 expense; bank account: motor vehicle at cost $30000 debit

Cincome statement: $5500 expense; bank account: motor vehicle at cost $23500 debit

Dincome statement: $5500 income; bank account: motor vehicle at cost $30000 credit

✓ Correct Answer

The correct answer is A: income statement: $1700 income; bank account: motor vehicle at cost $23500 credit

📋 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...

🎯 Mark Scheme Breakdown

Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.

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About This A-Level Accounting Question

Topic

This multiple-choice question tests Non-Current Assets and Depreciation in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Accounting Oct/Nov 2022 examination, Paper 1 Variant 2.

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