On 31 March 2019, Dixies business traded-in a machine (a Z-15 model) which it had originally purchased
Question:
On 31 March 2019, Dixie’s business traded-in a machine (a Z-15 model) which it had originally purchased on 1 April 2016 for £19,000. Dixie had depreciated the Z-15 at 10 per cent 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?
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Related Book For 
Frank Woods Business Accounting An Introduction To Financial Accounting
ISBN: 9781292365435
15th Edition
Authors: Alan Sangster, Lewis Gordon, Frank Wood
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