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

Accounting for non-current assets — practice question

The details below concern a trader’s non-current assets. • accumulated depreciation at 31 May 2020: $40\,000$ • depreciation charge for the year ended 31 May 2021: $9\,000$ • accumulated depreciation at 31 May 2021: $46\,000$ In the year ended 31 May 2021, a non-current asset costing $10\,000$ was sold. The loss on disposal amounted to $1\,200$. What were the sale proceeds?

  • A$5\,800$
  • B$7\,000$
  • C$8\,200$
  • D$8\,800$

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