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

Accounting for non-current assets — practice question

Jakoub runs a restaurant. Its financial year ends on 31 December. The business owns numerous small pieces of kitchen equipment.
(a)[4]

Prepare the kitchen equipment account covering the year ended 31 December 2022.

(b)[2]

State two reasons why a business may select the reducing balance method when depreciating non-current assets.

(c)[5]

Prepare a journal entry to record the depreciation charge for vehicles for the year ended 31 December 2022. A narrative is not required.

(d(i))[1]

Define the term capital expenditure.

(d(ii))[1]

Define the term capital receipts.

(e(i))[1]

Calculate the overall amount of capital expenditure.

(e(ii))[1]

Calculate the overall amount of capital receipts.

Worked solution & mark scheme

This 15-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI