A-LevelAccountingAccounting for non-current assets9706/12 · Feb/Mar 2022 · Q41 Mark

A business has a year end of 31 December. It purchased a non-current asset on 1 January 2020 for $100000. The asset was depreciated using the reducing balance method at 20% per annum. It was sold for $40000 on 1 January 2022. What was the loss on disposal?

A$20000

B$24 000

C$40000

D$60000

✓ Correct answer

B: $24 000

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Topic: Accounting for non-current assets, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Feb/Mar 2022 Paper 1 Variant 2, question 4.

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A business has a year end of 31 December. It purchased a non-current asset on 1 January 2020 for $100000. The asset was depreciated using the reducing balance method at 20% per annum. It was sold for $40000 on 1 January 2022. What was the loss on disposal?

✓ Correct answer

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