A-LevelAccountingNon-current AssetsFeb/Mar 2020Paper 1 Q41 Mark

A business has a year end of 31 December. It purchased a motor vehicle on 1 January 2017 for $15000. The motor vehicle was sold on 31 March 2019 for $8000. Depreciation is calculated at 20% per annum using the reducing balance method on a month by month basis. What is the accumulated depreciation and profit/loss on disposal of the motor vehicle?

Q: What is the correct answer to this A-Level Accounting question?

The correct answer is C: 5880 1120 loss.

Q: What topic does this question test?

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

A5400 1600 loss

B5400 1600 profit

C5880 1120 loss

D5880 1120 profit

✓ Correct Answer

The correct answer is C: 5880 1120 loss

📋 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 in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Accounting Feb/Mar 2020 examination, Paper 1 Variant 2.

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