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

Accounting for non-current assets — practice question

The book value of a company’s non-current assets at the start and finish of a financial year is given as follows: on 1 January $100000$, and on 31 December $80000$. Over the year, non-current assets were disposed of for $20000$ cash, giving a profit on disposal of $5000$. Depreciation charged for the year amounted to $8000$. What was the expenditure on non-current assets during the year?

  • A$3000$
  • B$5000$
  • C$8000$
  • D$15000$

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