Question

1st january 2009 a company purchased a plant for ₹300000 depreciation is charged to 20% p. a on original cost each year. On 30th november 2011, the plant is sold for 100000. Prepare the plant account assuming that the books are closed on 31st march every year.

Answer 1

Answer : 1,97,600 Rs

At the time at which the plant is sold , the plant depreciated book value is Rs. 1,97,600 and Sell value is 1,00,000 Rs. then

the loss will be Rs. 97,600

Explanation:

FY ( 2009 - 10 )

Depreciated value = 2,85,000 Rs.

FY ( 2010 - 11 )

Depreciated value = 2,28,000 Rs.

FY ( 2011 - 12 )

8 month depreciated value = 1,97,600 Rs.