Paper 3 · Statement of cash flows
Medals Limited sold buildings that had originally cost 320 000, realising a profit on disposal of $101 000. What was the net book value of the buildings at the date of sale?
Model answer
$219000
Also accepted: 219000, $219 000, 219 000, $219,000, 219,000
Explanation: Profit on disposal = sale proceeds - net book value, so net book value = sale proceeds - profit = 101 000 = $219 000.
Derived from ZIMSEC Accounting Paper 3, June 2019, Q2
