A-LevelAccountingNon-Current Assets and DepreciationMay/June 2014Paper 1 Q61 Mark

On 1 June 2011, a company purchases machinery for $18000. The company depreciates machinery at 20% per annum using the reducing balance method. The machinery was sold on 1 June 2013 for $9400. What is the profit/loss on the disposal of the machinery?

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

The correct answer is B: loss $2120.

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.

Aloss $1400

Bloss $2120

Cprofit $1400

Dprofit $2120

✓ Correct Answer

The correct answer is B: loss $2120

📋 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 May/June 2014 examination, Paper 1 Variant 2.

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