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
0
Answer:
1 rupees only and 4 rules maximum
Answered by
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]
Similar questions