O-LevelAccountingAccounting procedures7707/12 · May/June 2015 · Q141 Mark

Sara started a business on 1 January 2013 and purchased equipment costing $10000. She depreciated the equipment by 20% per annum using the straight-line method. The equipment was sold for $5200 on 1 January 2015. What was the profit or loss on the sale of the equipment?

A$800 loss

B$800 profit

C$1200 loss

D$1200 profit

✓ Correct answer

A: $800 loss

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Topic: Accounting procedures, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, May/June 2015 Paper 1 Variant 2, question 14.

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