Day: October 28, 2020

A vehicle was purchased with an original cost £60 000. The vehicle was later sold for £18,000 and the profit on disposal was £3,000.

What was the accumulated depreciation of the vehicle on disposal? 

Select ONE answer:

1. £15,000
2. £18,000
3. £42,000
4. £45,000

Show your workings to arrive at your answer, and explain and justify your reasons:

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This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct – Original cost £60,000 – sale price £18,000 + profit on disposal £3,000

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