Paper 3 · November 2011 · Statement of Cash Flows
The Quartet made no disposals of plant and equipment during the year ended 31 December 2005. Calculate the depreciation charged on plant and equipment for that year. Give your answer in $ 000.
Model answer
460
Also accepted: $460, 460000, $460 000
Explanation
With no disposals, nothing leaves the provision, so the whole movement in it is the year's charge: 700 - 240 = 460, that is $460,000.
Derived from ZIMSEC Accounting 9197/3 Paper 3 (Case Study), November 2011, Q1