O-LevelAccountingAccounting procedures7707/12 · Oct/Nov 2017 · Q141 Mark

A café owner decided to use the revaluation method to calculate depreciation on the kitchen equipment. Kitchen equipment costing $3200 was purchased on 1 January 2016. This was expected to have a useful life of 4 years. Additional kitchen equipment was purchased during the year for $400. The total kitchen equipment was valued at $2900 on 31 December 2016. What was the depreciation charge for the year ended 31 December 2016?

A$300

B$700

C$800

D$900

✓ Correct answer

B: $700

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Topic: Accounting procedures, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, Oct/Nov 2017 Paper 1 Variant 2, question 14.

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