Vehicle HG56, which had cost 12,000, has been depreciated at 20% on cost. It was purchased on

Question:

Vehicle HG56, which had cost £12,000, has been depreciated at 20% on cost. It was purchased on 30 June 2015 and depreciation is provided for on a monthly basis. On 30 October 2017 it is traded in for a new vehicle which costs £19,000. A cheque for £12,000 is paid in full settlement of the outstanding balance.

Calculate the profit or loss on the trade-in.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Frank Woods Business Accounting Basics

ISBN: 9780273725008

1st Edition

Authors: Frank Wood, Mr David Horner

Question Posted: