Pearson Edexcel IGCSE · Accounting

Depreciation: Practice Questions

4 multiple-choice questions marked as you go, and 2 written questions with worked solutions. All on Depreciation.

6 questions13 marksFree, no account

Question 1

1 mark

A company purchased a motor vehicle for $\$20,000$ on 1 January 2022. Depreciation is charged at 25% per annum using the reducing balance method. What is the net book value of the vehicle on 31 December 2023?

Question 2

1 mark

A machine was purchased for $ \$40,000 $ on 1 January 2022. The business uses the reducing balance method at 20% per annum. Calculate the net book value of the machine at 31 December 2023.

Question 3

1 mark

A company purchased a machine for $\$60,000$ on 1 January 2022. It is expected to have a useful life of 5 years and a residual value of $\$5,000$. Using the straight-line method, what is the depreciation expense for the year ended 31 December 2022?

Question 4

1 mark

A company purchased a delivery van for $\$40,000$ on 1 January 2021. Depreciation is charged at 20% per annum using the reducing balance method. What is the depreciation expense for the year ended 31 December 2022?

Question 5

4 marks

A machine was purchased on 1 January 2022 for $ \$12,000 $. Its estimated useful life is 4 years and its residual value is $ \$2,000 $. Calculate the depreciation charge for the year ended 31 December 2022 using the straight-line method.

Write your answer out first, then check it against the worked solution.

Question 6

5 marks

A company purchased a delivery van for $ \$30,000 $ on 1 April 2021. It depreciates its assets using the reducing balance method at a rate of 20% per annum. The company's financial year ends on 31 December. Calculate the accumulated depreciation for the delivery van as at 31 December 2022.

Write your answer out first, then check it against the worked solution.

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