A-LevelAccountingNon-Current Assets and DepreciationMay/June 2012Paper 1 Q31 Mark
A non-current asset costing $206 000, with a net book value of $131 000, is revalued to $275 000. How should the revaluation be recorded?
ADr Asset at cost $69 000
Cr Revaluation reserve $69 000
BDr Provision for depreciation $75 000
Dr Asset at cost $69 000
Cr Revaluation reserve $144 000
CDr Provision for depreciation $144 000
Cr Revaluation reserve $144 000
DDr Revaluation reserve $144 000
Cr Asset at cost $69 000
Cr Provision for depreciation $75 000
✓ Correct Answer
The correct answer is B. This question tests the candidate's understanding of non-current assets and depreciation 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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