A-LevelAccountingNon-Current Assets and DepreciationFeb/Mar 2017Paper 1 Q31 Mark

During the year ended 31 December 2012 a business purchased a vehicle for $23500. On 30 September 2015 it was sold for $3500. Depreciation was charged at 20% per annum using the straight line method. A full year's depreciation was charged in the year of purchase and the year of disposal. What was the profit or loss on disposal of the vehicle?

Q: What is the correct answer to this A-Level Accounting question?

The correct answer is A: $1200 loss.

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.

A$1200 loss

B$1200 profit

C$5900 loss

D$5900 profit

✓ Correct Answer

The correct answer is A: $1200 loss

📋 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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About This A-Level Accounting Question

Topic

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

Source

This question appeared in the Cambridge A-Level Accounting Feb/Mar 2017 examination, Paper 1 Variant 2.

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