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

Accounting for non-current assets — practice question

The accounting year-end for a company is $30$ June. A machine was acquired on $1$ October $2016$ for $16000$ and later sold on $31$ March $2019$ for $7000$. The company charges depreciation on machinery at $15\%$ per annum on cost, with depreciation worked out on a month-by-month basis. What was the profit or loss on disposal?

  • A$1800 loss
  • B$1800 profit
  • C$3000 loss
  • D$3000 profit

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