Paper 3 · June 2019 · Statement of Cash Flows
Medals Limited sold buildings that had originally cost $240 000 for $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
Explanation
Profit on disposal = sale proceeds - net book value, so net book value = sale proceeds - profit = $320 000 - $101 000 = $219 000.
Derived from ZIMSEC Accounting Paper 3, June 2019, Q2