WorksheetsDepreciation AS level
Total questions: 8
Worksheet time: 9mins
A business purchased a new delivery van. The total amount paid is made up of the basic cost of the delivery and the following:
1 changing the inside to carry tools and materials
2 one year’s insurance and servicing
3 painting the exterior with the business name
Which items are included in the total to be entered in non-current assets?
1 and 2 only
1 and 3 only
2 and 3 only
1, 2 and 3
A business has a year end of 31 December. It depreciates its motor vehicles over four years using the straight-line method. A full year’s depreciation is charged in the year of purchase, but none in the year of sale.
A motor vehicle purchased on 1 July 2016 for $18 000 had an estimated residual value of $4000. The motor vehicle was sold for $5000 on 31 December 2019.
What was the profit or loss on disposal?
$1000 loss
$1000 profit
$2500 loss
$2500 profit
A new business has several costs relating to its building. Which costs are classified as revenue expenditure?
1 cost of an extension to the factory
2 legal fees on purchase of land
3 repairs to the warehouse roof
1 and 2
1 only
2 and 3
3 only
A motor vehicle costing $8000 is depreciated by 25% per annum using the reducing balance method. After depreciating it for two years it was sold for $4000.
What is the profit or loss on disposal?
$500 loss
$500 profit
$2000 loss
$2000 profit
A company had a non-current asset which cost $370 000. The asset had a 10-year useful life and an estimated residual value of $20 000. A full year’s charge for depreciation is made in every year of use.
After four years the asset was sold. The loss on disposal was $30 000.
What were the sale proceeds?
$192 000
$200 000
$202 000
$210 000
What is the journal entry to record the revaluation?
A
B
C
D
What were the effects of this on the end-of-year statement of financial position?
A
B
C
D
How is depreciation calculated using the straight-line method?
as a fixed percentage of the asset’s net book value
as a fixed percentage of the asset’s original cost
as a variable percentage of the asset’s net book value
as a variable percentage of the asset’s original cost
