A-LevelAccountingAccounting for non-current assets9706/12 · Oct/Nov 2023 · Q51 Mark
A used motor vehicle was part exchanged for a new motor vehicle. The balance of the purchase cost of the new motor vehicle was settled by cheque. What were the entries to record the part-exchange value?
Aaccount debited: bank, account credited: disposal
Baccount debited: bank, account credited: motor vehicles
Caccount debited: motor vehicles, account credited: bank
Daccount debited: motor vehicles, account credited: disposal
✓ Correct answer
D: account debited: motor vehicles, account credited: disposal
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