A-LevelAccountingAccounting for non-current assets9706/12 · May/June 2018 · Q31 Mark
A business has an accounting year-end of 31 March. It purchased a car on 1 April 2014 for $15000. The car was sold on 30 September 2017 for $5000. Depreciation is charged at 20% per annum. A full year's depreciation is charged in the year of purchase. No depreciation is charged in the year of sale. What was the profit or loss on disposal?
Aloss of $500
Bloss of $1000
Cprofit of $500
Dprofit of $1000
✓ Correct answer
B: loss of $1000
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