O-LevelAccountingAccounting procedures7707/12 · May/June 2023 · Q171 Mark

Ravi's financial year ends on 30 April. Ravi bought a motor vehicle for $8000 on 1 May 2020 and sold it for $4050 on 1 May 2022. He uses the reducing balance method of depreciation at 20% per annum. What would be recorded in the income statement for the year ended 30 April 2023 for the disposal of the motor vehicle?

A$750 loss

B$750 profit

C$1070 loss

D$1070 profit

✓ Correct answer

C: $1070 loss

Oracle Prep sorts past-paper questions by topic, so you can drill Accounting procedures and see which topics are most likely to come up next.

Topic: Accounting procedures, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, May/June 2023 Paper 1 Variant 2, question 17.

Questions and mark schemes are from past examination papers and remain the copyright of the exam board. How Oracle Prep builds its content