On 31 December 20X4 Oksana's statement of financial position included the following information in respect of motor vehicles: Oksana's accounting policy is to depreciate motor vehicles on the reducing balance basis at 25% each year.On 31 December 20X5 she disposed of a vehicle that was bought on 1 January 20X3 at a cost of £18 700.She sold the vehicle for £6900, and acquired a replacement straight away for £21 250.There were no other acquisitions or disposals during the 20X5 accounting year.
What is the carrying amount of Oksana's motor vehicles for inclusion in her statement of financial position at 31 December 20X5 (to the nearest £)?

Question

On 31 December 20X4 Oksana's statement of financial position included the following information in respect of motor vehicles:  Oksana's accounting policy is to depreciate motor vehicles on the reducing balance basis at 25% each year.On 31 December 20X5 she disposed of a vehicle that was bought on 1 January 20X3 at a cost of £18 700.She sold the vehicle for £6900, and acquired a replacement straight away for £21 250.There were no other acquisitions or disposals during the 20X5 accounting year.
What is the carrying amount of Oksana's motor vehicles for inclusion in her statement of financial position at 31 December 20X5 (to the nearest £)?

Quizplus · Accepted Answer

The Answer of On 31 December 20X4 Oksana's statement of financial position included the following information in respect of motor vehicles:  Oksana's accounting policy is to depreciate motor vehicles on the reducing balance basis at 25% each year.On 31 December 20X5 she disposed of a vehicle that was bought on 1 January 20X3 at a cost of £18 700.She sold the vehicle for £6900, and acquired a replacement straight away for £21 250.There were no other acquisitions or disposals during the 20X5 accounting year.
What is the carrying amount of Oksana's motor vehicles for inclusion in her statement of financial position at 31 December 20X5 (to the nearest £)?

On 31 December 20X4 Oksana's Statement of Financial Position Included