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

Accounting for non-current assets — practice question

J Limited’s non-current assets are listed below. Its financial year finishes on 31 December, and the depreciation policy is shown here.
(a(i))[2]

Calculate the balance of the provision for depreciation accounts at 31 December 2024 for the following category of non-current assets: Machinery.

(a(ii))[2]

Calculate the balance of the provision for depreciation accounts at 31 December 2024 for the following category of non-current assets: Motor vehicles.

(b)[4]

Prepare a journal entry to record the revaluation of the freehold property. A narrative is not needed.

(c)[4]

Prepare the disposal account for the machinery.

(d)[3]

Explain, with reference to one accounting concept, why the suggestion should not be carried out.

Worked solution & mark scheme

This 15-mark question has a full step-by-step worked solution and mark scheme. One marking point: Provision account balance = $35100

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