On 1 July 2021, Tim bought a delivery van for $10000. He paid an additional $900 to have racks fitted inside, and $800 for a year's insurance. Tim provides for depreciation at the rate of 10% per annum. A full year's depreciation is charged in the year of acquisition. What was the total for expenses recorded in Tim's income statement in respect of the van for the year ended 30 September 2021?

Q: What topic does this question test?

This question tests Non-current Assets and Depreciation in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Q: Which exam paper is this question from?

This question appeared in the Cambridge A-Level Accounting Feb/Mar 2022 examination, Paper 1 Variant 2 (9706_m22_qp_12.pdf).

Question

On 1 July 2021, Tim bought a delivery van for $10000. He paid an additional $900 to have racks fitted inside, and $800 for a year's insurance. Tim provides for depreciation at the rate of 10% per annum. A full year's depreciation is charged in the year of acquisition. What was the total for expenses recorded in Tim's income statement in respect of the van for the year ended 30 September 2021?

Oracle Prep · Accepted Answer

The correct answer is A: $1290.

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