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

Accounting for non-current assets — practice question

On 1 July 2021, Tim purchased a delivery van for $10000. In addition, he spent $900 to install racks inside it, and $800 on insurance for one year. Tim charges depreciation at a rate of $10\%$ per annum. The year of purchase includes a full year's depreciation. What was the total amount of expenses shown in Tim’s income statement for the van for the year ended 30 September 2021?

  • A$1290
  • B$1690
  • C$2100
  • D$2500

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