Acca financial Accounting (FA) Study Text ac ca (FA)

What was the inventory valuation for inclusion in the statement of 

financial position of X? 

$________ 

Non-current assets 

21  At 1 January 20X5, Mary had motor vehicles which cost $15,000. On 

31 August 20X5 she sold a motor vehicle for $5,000 which had originally 

cost $8,000 and which had a carrying amount of $4,000 at the date of 

disposal. She purchased a new motor vehicle which cost $10,000 on 

30 November 20X5. 

Mary's policy is to depreciate motor vehicles at a rate of 25% pa on the 

straight-line basis, based on the number of months’ ownership.