Paper 3 · Statement of cash flows
Medals Limited sold vehicles that had originally cost 12 000. The accumulated depreciation on these vehicles at the date of sale was $58 000. What was the loss on disposal of the vehicles?
Model answer
$5000
Also accepted: 5000, $5 000, 5 000, $5,000, 5,000
Explanation: Net book value at disposal = cost - accumulated depreciation = 58 000 = 17 000 - 5 000.
Derived from ZIMSEC Accounting Paper 3, June 2019, Q2
