Accounting | Question in description | Question 3

Question

On 31 March 2019 dixie’s business traded-in a machine(a Z-15model) which it had originally purchased on 1 April 2016 for £19,000.Dixie had depreciated the Z-15 at 10% per annum using the straight-line method. Dixie part-exchanged the Z-15 for a newer model (the Z-18). The vendor's list price for the Z-18 was £32,000 but Dixie only paid £20,000 plus the trade-in in full settlement Required: What was the profit or loss on the disposal of the Z-15 in Dixie's Income Statement for the financial year to 31 March 2019

Subscribe our channel for more SOLUTION

We solve this question in our YouTube video with step by step and here solution link(Click here)👉VIDEO