Accounting 9706 · AS & A Level · Accounting for non-current assets
Accounting for non-current assets — practice question
K Limited has been operating for many years and prepares financial statements every year to 30 April. On 1 May 2016, plant and equipment were recorded at a cost of $84\,695 and the provision for depreciation stood at $32\,855. Further details about acquisitions, disposals and the depreciation policy are provided.
(a(i))[2]
Calculate the depreciation charge for plant and equipment for the year ended 30 April 2017. Show your workings.
(a(ii))[4]
Prepare the motor vehicle disposal account for the year ended 30 April 2017. Your workings must be included.
(b)[4]
Explain two accounting concepts that are applied when depreciation is charged.
(c)[5]
Advise the directors which method of finance they should select. Justify the choice you make.
Worked solution & mark scheme
This 15-mark question has a full step-by-step worked solution and mark scheme.