Day: April 1, 2024

Accounting Multiple Choice Question – 1 April 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 has the following information in its financial statements relating to fixtures and fittings as at 31 December:

2019   2018

£   £

  • Cost   600,000   480,000
  • Accumulated depreciation   180,000   218,000
  • Carrying amount   420,000   262,000

During the year to 31 December 2019, the following transactions occurred in relation to fixtures and fittings:

  • Additions £284,000
  • Sales proceeds from disposals £178,800
  • Depreciation charge £66,400

What is Alex plc’s profit or loss on disposals of fixtures and fittings in the year ended 31 December 2019?

Select ONE answer:

  1. £119,200 loss
  2. £119,200 profit
  3. £196,800 profit
  4. £196,800 loss

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
  3. Not correct
  4. Not correct

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