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

Accounting for non-current assets — practice question

A business charges depreciation on its machinery at $10\%$ per annum by the straight-line method, calculated month by month. The business’s financial year end falls on 30 June. Machinery that cost $6600 on 1 April 2020 was disposed of on 30 November 2021. The profit on sale was $350. What were the sale proceeds?

  • A$5150
  • B$5425
  • C$5850
  • D$6125

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