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

Accounting for non-current assets — practice question

A business disposed of one of its non-current assets. The details for this asset are shown below: Purchase price was $\$50000$ Depreciation charged up to the date of sale was $\$20000$ The asset was sold for $\$60000$ What was the effect of this transaction on the net assets in the year in which the asset was sold?

  • Adecrease of $\$30000$
  • Bdecrease of $\$60000$
  • Cincrease of $\$30000$
  • Dincrease of $\$60000$

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