Day: April 29, 2022

The net book value of motor vehicles of a business was as follows:

• 31 December 2017 – £238,000
• 31 December 2018 – £243,000

During the year ended 31 December 2018, a new motor vehicle was purchased for £47,000.

A motor vehicle costing £53,000 with accumulated depreciation £31,000 was sold for £7,000.

What was the depreciation charge for motor vehicles for the year ended 31 December 2018?

Select ONE answer:

1. £11,000
2. £20,000
3. £35,000
4. £42,000

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

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

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

The answer is 2

1. Not correct
2. Correct ==> £238k – (£53k – £31k) + £47k = £263k – £243k = £20k
3. Not correct
4. Not correct

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