Paper 3 · Statement of cash flows

Medals Limited's machinery had accumulated depreciation of $340 000 at the start of the year and$ 450 000 at the end of the year, with no machinery disposed of during the year. What was the depreciation charge on machinery for the year ended 31 December 2018?

Model answer

$110000

Also accepted: 110000, $110 000, 110 000, $110,000, 110,000

Explanation: With no disposals, the increase in accumulated depreciation is the year's charge:

450 000 -

340 000 = $110 000.

Derived from ZIMSEC Accounting Paper 3, June 2019, Q2

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