Paper 3 · June 2023 · Depreciation

Wise Ltd's machinery account at cost, year ended 30 June 2017, opens with a balance of $200 000. Machines are purchased during the year: Machinery 5 cost $30 000 (1 October 2016), Machinery 6 cost $20 000 (1 April 2017), Machinery 7 cost $45 000 (1 May 2017, bought from Wellingtons Company on credit). What is the total cost of machinery purchased during the year?

Model answer

95000

Also accepted: $95 000, 95 000

Explanation

30 000+20 000+45 000=95 000.

Derived from ZIMSEC Accounting 6001/3 Paper 3 (Problem Solving), June 2023, Q1

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