O-LevelAccountingAccounting proceduresOct/Nov 2018Paper 1 Q141 Mark

Chris purchased a machine costing $15000 on 1 January 2016. He depreciates the machine using the diminishing (reducing) balance method at 20% per annum. Which journal entry did Chris make on 31 December 2017?

Q: What topic does this question test?

This question tests Accounting procedures in O-Level Accounting (syllabus code 7707). It is worth 1 mark.

Aincome statement 2400 provision for depreciation of machinery 2400

Bincome statement 3000 provision for depreciation of machinery 3000

Cprovision for depreciation of machinery 2400 income statement 2400

Dprovision for depreciation of machinery 3000 income statement 3000

✓ Correct Answer

The correct answer is A: income statement 2400 provision for depreciation of machinery 2400

📋 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 O-Level Accounting Question

Topic

This multiple-choice question tests Accounting procedures in O-Level Accounting (syllabus code 7707). It is worth 1 mark.

Source

This question appeared in the Cambridge O-Level Accounting Oct/Nov 2018 examination, Paper 1 Variant 1.

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