Accounting 9706 · AS & A Level · Accounting for non-current assets

Accounting for non-current assets — practice question

A business makes provision for depreciation when it accounts for non-current assets.

(a(i))[3]

State three likely causes of depreciation.

(a(ii))[4]

Explain two accounting concepts that are used when depreciation is provided for.

(b(i))[6]

Prepare the motor vehicles provision for depreciation account for the year ended 31 December 2019.

(b(ii))[2]

Prepare the disposal account for the year ended 31 December 2019.

Worked solution & mark scheme

This 15-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Wear and tear on the asset” …