O-LevelAccountingAccounting procedures7707/12 · May/June 2018 · Q131 Mark

A motor vehicle cost $20000. It was sold for $12000. At the date of disposal the motor vehicle had been depreciated by $7200. Which journal entry records the closing of the disposal account?

Adisposal account 800 income statement 800

Bdisposal account 8000 income statement 8000

Cincome statement 800 disposal account 800

Dincome statement 8000 disposal account 8000

✓ Correct answer

C: income statement 800 disposal account 800

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Topic: Accounting procedures, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, May/June 2018 Paper 1 Variant 2, question 13.

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