A-LevelAccountingDepreciation and Disposal of Non-Current AssetsMay/June 2024Paper 1 Q51 Mark
Adam's financial year ends on 31 December. At the beginning of the year, on 1 January, the carrying value of machinery was $20000. During the year, on 30 June, he purchased a new machine for $6000. He paid 50% of the cost in cash and the balance by part exchange of an old machine which had the carrying value of $2500 on that date. He depreciates his machinery by 20% per annum on the carrying value calculated on a time basis. What is the carrying value of the machinery shown in the statement of financial position at the end of the year on 31 December?
A$18000
B$18800
C$19 150
D$20 800
✓ Correct Answer
The correct answer is C: $19 150
📋 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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