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

Accounting for non-current assets — practice question

H Limited’s financial year came to an end on 31 December 2024, and the information below was available on that date.
(a(i))[1]

Calculate the depreciation charge for 2024 on the following non-current assets: Motor vehicles.

(a(ii))[2]

Calculate the depreciation charge for 2024 on the following non-current assets: Furniture and equipment.

(b)[2]

Calculate the profit or loss on the disposal of equipment.

(c)[12]

Prepare the statement of profit or loss for H Limited for the year ended 31 December 2024.

(d)[6]

Prepare the statement of changes in equity for H Limited for the year ended 31 December 2024.

(e)[7]

Advise the directors on which option to select. Support your answer by weighing up the advantages and disadvantages of each option.

Worked solution & mark scheme

This 30-mark question has a full step-by-step worked solution and mark scheme. One marking point: Working shown as: 20% \times ($80 000 - $28 400) = $10 320

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