Subsection 1.3. Accounting for non-current assets for Accounting, A Level - revisedeck

1.3. Accounting for non-current assets

A subsection of Accounting, 9706, through 1. Financial accounting (AS Level)

Listing 10 of 480 questions

A business depreciates its machinery at 10% per annum using the straight-line method on a month-by-month basis. The business’s financial year end is 30 June. Machinery which had cost $6600 on 1 April 2014 was sold on 30 November 2015. The profit on sale was $350. What were the sale proceeds?

9706_s17_qp_11

MCQ

2017

Paper 1, Variant 1

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A trader bought a machine on 1 January 2015. He depreciated it at the rate of 10% per annum using the straight-line method, and he sold it on 1 January 2017 for $4000. The profit on disposal was $200. How much had the machine cost on 1 January 2015?

9706_s17_qp_13

MCQ

2017

Paper 1, Variant 3

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June purchased a new machine. She depreciated it at a rate of 40% per annum using the reducing balance method. After two years its net book value was $3600. What was the purchase price of the machine?

9706_s19_qp_12

MCQ

2019

Paper 1, Variant 2

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The following information is available in respect of the purchase of a new machine. $ machine cost 80 000 less 10% trade discount 8 000 72 000 delivery cost 1 200 installation cost 1 800 annual maintenance cost 4 000 The business plans to keep the machine for 5 years. It is expected to be sold for $5000. What will be the annual depreciation charge using the straight-line method?

9706_s20_qp_11

MCQ

2020

Paper 1, Variant 1

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A company purchased a machine on 1 April 2017 for $25 000. It was depreciated at 20% per annum using the straight-line method. A full year’s depreciation is charged in the year of purchase but none in the year of sale. On 30 June 2019 the machine was sold for $12 500. The company year-end is 31 December. What was the profit or loss on the disposal of the machine?

9706_s20_qp_12

MCQ

2020

Paper 1, Variant 2

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The following information is available in respect of the purchase of a new machine. $ machine cost 80 000 less 10% trade discount 8 000 72 000 delivery cost 1 200 installation cost 1 800 annual maintenance cost 4 000 The business plans to keep the machine for 5 years. It is expected to be sold for $5000. What will be the annual depreciation charge using the straight-line method?

9706_s20_qp_13

MCQ

2020

Paper 1, Variant 3

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During the year ended 31 December 2017 a business purchased a vehicle for $23 500. On 30 September 2020 it was sold for $3500. Depreciation was charged at 20% per annum using the straight-line method. A full year’s depreciation was charged in the year of purchase and the year of disposal. What was the profit or loss on disposal of the vehicle?

9706_s21_qp_13

MCQ

2021

Paper 1, Variant 3

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A sole trader purchased a machine costing $30 000 with an estimated residual value of $5000. It was expected to have a useful life of five years. At the end of the fourth year, the machine was sold at a profit of $200. Depreciation is charged using the straight-line method. A full year’s depreciation is charged for each year the asset is owned. What was the amount of sale proceeds?

9706_s22_qp_11

MCQ

2022

Paper 1, Variant 1

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A business depreciates its machinery at 10% per annum using the straight-line method on a month-by-month basis. The business’s financial year end is 30 June. Machinery which had cost $6600 on 1 April 2020 was sold on 30 November 2021. The profit on sale was $350. What were the sale proceeds?

9706_s22_qp_12

MCQ

2022

Paper 1, Variant 2

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A trader bought a machine on 1 January 2019. He depreciated it at the rate of 10% per annum using the straight-line method. He sold this machine on 1 January 2021 for $4000. The profit on disposal was $200. How much had the machine cost on 1 January 2019?

9706_s22_qp_13

MCQ

2022

Paper 1, Variant 3

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Questions Discovered

480