Included in Leonie's Fixed Assets Was a Piece of Machinery

question 16

Multiple Choice

Included in Leonie's fixed assets was a piece of machinery which cost £68000 and on which depreciation of £32000 had been charged. This was sold during the year for £28000. How would this be recorded in the statement of financial position?

• A) Reduce the fixed assets by £68000 and show an increase in bank of £28000
• B) Reduce the fixed assets by £36000 and show a corresponding increase in the bank
• C) Reduce the fixed assets by £68000, depreciation by £32000 and show an increase in the bank of £36000
• D) Reduce the fixed assets by £68000, depreciation by £32000 and show an increase in the bank of £28000
• E) None of the above