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

Accounting for non-current assets — practice question

Moser has supplied details of his non-current assets for the year ended 30 November 2018.
(a)[3]

State how disposing of a non-current asset affects the income statement and the statement of financial position. No calculations are needed.

(b)[6]

Prepare the non-current assets section of Moser’s statement of financial position as at 30 November 2018.

(c(i))[4]

Explain why the reducing balance method of depreciation is better suited than the straight-line method for assets such as computer equipment.

(c(ii))[2]

Explain why the revaluation method of depreciation is suitable for assets such as loose tools.

Worked solution & mark scheme

This 15-mark question has a full step-by-step worked solution and mark scheme. One marking point: Only the profit or loss on disposal would be shown

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