Question

1 point
6. On 1st April 2018 a machinery is purchased for Rs. 2,00,000.
Depreciation is charged @10% p.a on original cost method and books are
closed on 31st December every year. On 1st July, 2020 the machinery is
sold for Rs. 1,20,000. Loss on sale will be:
Rs. 30,000
Rs. 35,000
Rs. 40,000
O Rs. 25,000
of nonreciation is.
1 point​

Answer 1

Answer:

35,000

hope it helps u...!

Answer 2

b) ₹35000

Explanation:

Given: On 1st April 2018 a machinery is purchased for Rs. 2,00,000.

           Depreciation is charged @10% p.a on original cost method

           On 1st July, 2020 the machinery is sold for Rs. 1,20,000.

           Books are closed on 31st December every year.

To find: Loss on sale of machinery.

Solution:

Calculation of depreciation on fixed assets:

Machinery purchased on 1/04/18 = ₹200000

Depreciation for the year ending 31/12/18 = 200000*10%*9/12

                                                                        = ₹15000

Deprecaition for the year ending 31/12/19 = 20000*10% = ₹20000

Depreciation at the end of 1/07/20 = 20000*10%*6/12 = ₹10000

Total Depreciation = 15000+20000+10000 = ₹45000

Value of machinery left = 200000-45000 = ₹155000

Machinery sold for 120000

Loss on sale of machinery will be = 155000-120000

                                                          = ₹35,000