A-LevelAccountingDepreciation and Disposal of Non-Current AssetsMay/June 2018Paper 1 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
The correct answer is B. This question tests the candidate's understanding of depreciation and disposal of non-current assets 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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