The motor vehicles at cost account had a balance of $90000 at the beginning of the year on
1 January.
On 1 September in the same year, the following transactions took place.
1 A motor vehicle was disposed of. The vehicle had been purchased in the previous
year for $21 000.
2 A new motor vehicle was purchased at a cost of $24000.
Depreciation is calculated at 20% using the straight-line method. Depreciation is charged on a
month-by-month basis for each month the motor vehicle is owned.
What was the depreciation charge for the year ended 31 December?

Q: What topic does this question test?

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

Q: Which exam paper is this question from?

This question appeared in the Cambridge A-Level Accounting May/June 2023 examination, Paper 1 Variant 2 (9706_s23_qp_12.pdf).

Question

The motor vehicles at cost account had a balance of $90000 at the beginning of the year on
1 January.
On 1 September in the same year, the following transactions took place.
1 A motor vehicle was disposed of. The vehicle had been purchased in the previous
year for $21 000.
2 A new motor vehicle was purchased at a cost of $24000.
Depreciation is calculated at 20% using the straight-line method. Depreciation is charged on a
month-by-month basis for each month the motor vehicle is owned.
What was the depreciation charge for the year ended 31 December?

Oracle Prep · Accepted Answer

The correct answer is B: $18200.

✓ Correct Answer

📋 Examiner Report & Trap Analysis

🎯 Mark Scheme Breakdown

Unlock the Examiner's Analysis

About This A-Level Accounting Question

Topic

Source

Practice on Oracle Prep

Related Accounting Questions