# IGCSE Accounting Paper-1: Specimen Questions with Answers 291 - 292 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 number: 291 (5 of 5 Based on Passage) Show Passage

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### 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 number: 292

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MCQ▾

### Question

ABC Ltd. bought a building at a cost of \$2,00,000 in 2010, the fair market value of which stands at \$4,50,000 on 31 December 2019. ABC Ltd. shows the building at \$4,50,000 in his balance sheet on 31 December 2019. Which accounting principle is violated here?

### Choices

Choice (4)

a.

Going Concern Principle

b.

Conservatism Principle

c.

Cost Principle

d.

Realization Principle