Accounting Multiple Choice Question – 20 March 2024

Alex plc purchased some plant and equipment on 1 July 2021 for £40,000.

The estimated scrap value of the plant in ten years’ time is estimated to be £4,000.

Alex plc’s policy is to charge depreciation monthly on the straight-line basis.

The depreciation charge on the plant in Alex plc’s income statement for the reporting period of twelve months ending 30 September 2021 should be?

Select ONE answer:

1. £900
2. £1,000
3. £2,700
4. £3,000

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 1

1. Correct – (£36,000/120 x 3 = £900
2. Not correct
3. Not correct
4. Not correct

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