Accounting 9706 · AS & A Level · Accounting for non-current assets
Accounting for non-current assets — practice question
The directors of W Limited have supplied the balances at 1 August 2016, together with details of motor vehicle depreciation and the transactions for the year ended 31 July 2017.
(a)[6]
State the double entry needed to record disposal of a non-current asset before any profit or loss on disposal is transferred to the income statement (amounts are not required).
(b)[7]
Prepare the provision for depreciation on motor vehicles account for W Limited for the year ended 31 July 2017 (dates are not needed).
(c)[2]
Calculate the impact on profit for the year of transactions 1 and 2 separately.
Worked solution & mark scheme
This 15-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Asset disposal is debited” …