Day: March 31, 2024

Accounting Multiple Choice Question – 31 March 2024

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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Alex plc commenced trading on 1 April 2013.

The carrying amount of plant and equipment in Alex plc’s financial statements as at 31 March 2015 was £399,960.

The cost of these assets was £614,500.

On 31 March 2016, an asset costing £11,500 was acquired.

Depreciation is charged on plant and equipment monthly at an annual rate of 25% straight line. There are no residual values.

The carrying amount of Alex plc’s plant and equipment in its statement of financial position at 31 March 2016 is?

Select ONE answer:

  1. £254,960
  2. £257,835
  3. £299,970
  4. £308,595

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 – This is calculated using T accounts, the carrying amount being £626,000- £368,165 – £257,835. Note that no depreciation will be charged in the year to 31 March 20X6 for the asset acquired at the year-end.
  3. Not correct
  4. Not correct

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