O-LevelAccountingAccounting procedures7707/11 · May/June 2024 · Q161 Mark

Mandeep depreciates his motor vehicles at the rate of 20% using the straight-line method. A full year's depreciation is provided in the year of purchase. Mandeep bought a motor vehicle on 1 January 2017 for $20000. On 1 June 2020 he bought a second motor vehicle for $10000. What was the depreciation charge on motor vehicles for the year ended 31 December 2020?

A$2000

B$4000

C$5000

D$6000

✓ Correct answer

D: $6000

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Topic: Accounting procedures, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, May/June 2024 Paper 1 Variant 1, question 16.

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