O-LevelAccountingAccounting proceduresOct/Nov 2025Paper 1 Q151 Mark
At the beginning of the year on 1 January, Zac paid $420 for an equipment repair. He entered this amount in the equipment account. At the end of the year on 31 December, depreciation of 20% per annum was charged on the balance of the equipment account, using the straight-line method. What was the overall effect on the book value of the equipment on 31 December?
A$84 understated
B$336 overstated
C$420 overstated
D$504 understated
✓ Correct Answer
The correct answer is B. This question tests the candidate's understanding of accounting procedures within the Accountingsyllabus. The examiner's mark scheme requires...
📋 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...
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