Day: June 4, 2023

Non-current assets of a company were:

start of year:

• at cost – £460,000
• cumulative depreciation – £215,000
• net book value – £245,000

end of year:

• at cost – £505,000
• cumulative depreciation- £237,000
• net book value – £268,000

During the year Non-current assets costing £92,000 were purchased and Non-current assets with a net book value of £16,000 were sold.

What was the depreciation charge for the year?

Select ONE answer:

1. £22,000
2. £23,000
3. £53,000
4. £69,000

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 3

1. Not correct
2. Not correct
3. Correct – £245k + £92k – £16k – £268k = = > £53k
4. Not correct

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