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

Accounting for non-current assets — practice question

The motor vehicles at cost account showed a balance of $90000 at the start of the year on 1 January. During the same year, on 1 September, these transactions occurred: 1 One motor vehicle was sold off. It had been bought in the previous year for $21000. 2 Another motor vehicle was acquired for $24000. Depreciation is worked out at $20\%$ by the straight-line method. It is applied month by month for every month that a motor vehicle is owned. Calculate the depreciation charge for the year ended 31 December.

  • A$15400
  • B$18200
  • C$18600
  • D$22400

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