A-LevelAccountingAccounting for Non-Current AssetsOct/Nov 2023Paper 1 Q61 Mark
A non-current asset of a business cost $300000 in 2021. It is depreciated using the reducing balance method at the rate of 40% per annum. A full year's depreciation is provided in the year of acquisition but none in the year of sale. The financial year of the business ends on 31 December. In 2023, the item was sold for $150000. Disposal costs of $15000 were incurred. What was the profit on disposal?
A$27000
B$42000
C$57000
D$70200
✓ Correct Answer
The correct answer is A. This question tests the candidate's understanding of accounting for non-current assets within the Accountingsyllabus. The examiner's mark scheme requires...
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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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