A-LevelAccountingDisposal of Non-current AssetsOct/Nov 2015Paper 1 Q131 Mark
A business depreciates its motor vehicles over four years using the straight-line method. A full year's depreciation is charged in the year of purchase, but none in the year of sale. A vehicle purchased on 1 July 2011 for $18000 had an estimated residual value of $4000. The vehicle was sold for $5000 on 31 December 2014. Which entry appeared in the income statement for the year ended 31 December 2014?
A$1000 loss
B$2500 loss
C$2500 profit
D$5000 profit
✓ Correct Answer
The correct answer is B. This question tests the candidate's understanding of 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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