Accountancy, asked by shabi5704, 19 days ago

1.7
What will be the amount of loss suffered on machinery purchased for Rs. 10,000 on
1-1-2020 and sold for Rs.5000 on 30-6-2022. The rate of depreciation charged 10%
p.a. on written down value method.
(a) 2695 (b) 2965 (c) 6925 (d) 9265
Rs 25 000 and a loan

Answers

Answered by chavanvinay723
0

Answer:

1 rupees only and 4 rules maximum

Answered by AllenGPhilip
12

Answer:

2,695 (Loss on sale)

Explanation:

Cost of machinery as on 01-01-2020 is 10,000

Depreciation for the year ending 2020 @10% is 1,000

Book value at the end of first year is 9,000

Cost of machinery at the beginning of 2021 is 9,000

Depreciation for the year ending 2021 is 900

Book value at the end of 2021 is 8,100

Cost of machinery at the beginning of 2022 is 8,100

Depreciation for 6 months is 8,100 × 10% × ⁶/₁₂ = 405

Loss on sale = 2,695

[10,000 - 1,000 - 900 - 405 - 5000]

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