O-LevelAccountingAccounting proceduresOct/Nov 2025Paper 2 Q320 Marks
Ahmed has a vehicle breakdown recovery business. He owns a recovery vehicle and has provided the following information about the vehicle: • Purchase date: 1 October 2021 • Purchase price: $80000 paid by bank transfer • Estimated residual value: $30000 • Estimated working life: 5 years Ahmed provides a full year's depreciation in the year of purchase but charges no depreciation in the year of disposal. He depreciates his vehicles using the reducing balance method at 20% per annum. His recovery vehicle is now 4 years old and is no longer reliable. Ahmed considered replacing his recovery vehicle on 31 August 2025. Ahmed's financial year ends on 30 April. REQUIRED
📋 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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