Accounting 0452 · IGCSE · Accounting for depreciation and disposal of non-current assets

Accounting for depreciation and disposal of non-current assets — practice question

Samuel launched his business on 1 January 2023 and purchased two delivery vans at $12000$ each. He charges depreciation on all vehicles at $10\%$ per annum, worked out monthly, by the straight-line method. On 1 April 2024, he disposed of one van and substituted it with a larger model that cost $24000$. What was the balance on the provision for depreciation of delivery vehicles account on 31 December 2024?

  • A$3300
  • B$4200
  • C$5700
  • D$6600

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