Accounting Multiple Choice Question – 1 April 2024

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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