O-LevelAccountingAccounting procedures7707/12 · Oct/Nov 2022 · Q141 Mark

On the first day of his financial year, Jason purchased a new machine costing $20000. On that date his old machine had a book value of $6000. Jason was allowed $4500 for the old machine in part exchange. He paid the balance by cheque. Machinery is depreciated at 20% per annum. How much should be charged to Jason's income statement for the year?

A$1500

B$2500

C$4000

D$5500

✓ Correct answer

D: $5500

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Topic: Accounting procedures, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, Oct/Nov 2022 Paper 1 Variant 2, question 14.

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