# IGCSE Accounting Paper-1: Specimen Questions with Answers 288 - 290 of 338

### Passage

Anand depreciates his furniture using the straight line method of depreciation. He provides a full year depreciation in the year of purchase and none in the year of disposal. He provided the following information:

 Furniture Cost\$ Accumulated Depreciation\$ At 31 Dec 2016 55000 11000 At 31 Dec 2017 55000 16500

There were no new purchase or disposal during the year ended 31 Dec 2017.

## Question 288 (2 of 5 Based on Passage)

Edit

### Write in Short

Calculate the rate of depreciation being applied by Anand? (Marks 3)

### Explanation

Annual Depreciation charge for the year ended 31 December 2017: \$

Accumulated Dep. as at 31 Dec 2017 16500

Less: Accumulated Dep. as at 31 Dec 2016 (11000)

Depreciation charge 5500

Further Information:

On 1 April 2018, Anand purchased a new furniture, cost \$ 15000.

On 15 June 2019, he sold old furniture costing \$ 6000 and on which three years depreciation had been provided.

## Question 289 (3 of 5 Based on Passage)

Edit

### Write in Brief

One Liner▾

Give the journal entry for eliminating the accumulated depreciation on the furniture sold on 15 June 2019. (Marks 2)

### Explanation

 Date Dr\$ Cr\$ 2019June 15 Provision for depreciation onFurniture A/c 1800 Disposal A/c 1800