Accounting Multiple Choice Question – 2 April 2024

Alex plc has the following note to its statement of financial position relating to plant and machinery as at 31 May.

2017   2016

   £   £

• Cost   110,000   92,000
• Accumulated depreciation   72,000   51,000  
• Carrying amount   38,000   41,000

During the year to 31 May 2017, the following transactions occurred in relation to plant and machinery:

• Additions £39,000
• Loss on disposals £2,000
• Depreciation charge £27,000

What were the proceeds from disposals of plant and machinery received by Alex plc in the year to 31 May 2017?

Select ONE answer:

1. £7,000
2. £8,000
3. £13,000
4. £17,000

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
4. Not correct

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