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?

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

The correct answer is B: loss of $1000.

Q: What topic does this question test?

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

Aloss of $500

Bloss of $1000

Cprofit of $500

Dprofit of $1000

✓ Correct Answer

The correct answer is B: loss of $1000

📋 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 Depreciation and Disposal of Non-Current Assets in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Accounting May/June 2018 examination, Paper 1 Variant 2.

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