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

Accounting for non-current assets — practice question

After being used for two years, a company disposed of one of its delivery vehicles for $\$2800$. The vehicle had originally cost $\$6500$. The company writes down its vehicles by $30\%$ per annum using the reducing balance method. What was the profit or loss on disposal?

  • Aloss $\$200$
  • Bloss $\$385$
  • Cprofit $\$200$
  • Dprofit $\$385$

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI