Tag: Disposal

Accounting Multiple Choice Question – 3 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 Trading plc purchases a machine for £15,000 on 1 January 2023.

After incurring transportation costs of £1,300 and spending £2,500 on installing the machine, it breaks down and costs £600 to repair.

Depreciation is charged at 10% per annum.

At what carrying amount will the machine be shown in Alex Trading plc’s statement of financial position at 31 December 2023?

Select ONE answer:

  1. £13,500
  2. £14,670
  3. £16,920
  4. £18,800

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 – Cost (15,000 + 1,300 + 2,500) = £18,800 == > Depreciation (10% x £18,800) == > Carrying amount £16,920
  4. Not correct

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Accounting Multiple Choice Question – 25 November 2023

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

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Alex Trading Ltd policy is to depreciate its equipment by 30% annually using the reducing balance method.

A piece of equipment which was two years old was sold for £6,000 and the profit on sale was £1,590.

What was the cost price of the equipment?

Select ONE answer:

  1. £7,590
  2. £9,000
  3. £9,600
  4. £11,025

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 – £9,000 * 0.3 = £2,700 = £6,300 * 0.3 = £1,890 == > £4,590 == > Dr £1,590 Cr £6,000 Cr £4,590 = Cost £9,000
  3. Not correct
  4. Not correct

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This work is licensed under a Creative Commons Attribution 4.0 International License.

Accounting Multiple Choice Question – 14 November 2023

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

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A vehicle cost £30,000. 

The vehicle was later sold for £9,000 and the profit on disposal was £1,500.

What was the accumulated depreciation of the vehicle on disposal?

Select ONE answer:

  1. £7,500
  2. £9,000
  3. £21,000
  4. £22,500

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 4

  1. Not correct
  2. Not correct
  3. Not correct
  4. Correct – £30k – (£9k – £1.5k) = £22.5k

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Accounting Multiple Choice Question – 30 July 2023

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

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The table gives information relating to the fixed assets of a business.

  • net book value at the end of the year – £25k
  • net book value at the beginning of the year – £16k
  • depreciation charge for the year – £5k
  • additions at cost during the year – £22k

What is the net book value of disposals during the year?

Select ONE answer:

  1. £8k
  2. £11k
  3. £18k
  4. £22k

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 – £25k + £5K – £22k
  2. Not correct
  3. Not correct
  4. Not correct

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.