O-LevelAccountingAccounting proceduresOct/Nov 2019Paper 1 Q171 Mark

Machinery, $20000, was purchased on 1 January 2017. The provision for depreciation of machinery account at 31 December 2018 showed the following entries. provision for depreciation of machinery account 2018 | $ | 2018 | $ ---|---|---|--- | | Jan 1 balance b/d | 4000 | | Dec 31 income statement | 3200 Which statement is not correct?

Q: What topic does this question test?

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

AThe annual depreciation on machinery is calculated at the rate of 20%.

BThe balance of the provision for depreciation of machinery account is transferred to the machinery account.

CThe diminishing (reducing) balance method of depreciation has been used to calculate the annual depreciation on the machinery.

DThe net book value of the machinery on 1 January 2019 was $12800.

✓ Correct Answer

The correct answer is B: The balance of the provision for depreciation of machinery account is transferred to the machinery account.

📋 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 2019 examination, Paper 1 Variant 2.

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