Question

2.
Sunrise Ltd. purchased a second-hand machine for 5,50,000 and spent 50,000 on
its repairs. Depreciation is to be provided @ 10% p.a. following Straight Line Method.
The machine is sold for * 4,40,000. Accounting year is financial year. Calculate the
gain (profit) or loss on sale of the machine in each of the following alternative cases:
Case 1 : If date of purchase is 1st April, 2015 and date of sale is 31st March, 2018.
Case 2 : If date of purchase is 1st April, 2016 and date of sale is 30th September, 2018.
Case 3 : If date of purchase is 1st July, 2015 and date of sale is 31st March, 2018.
Case 4 : If date of purchase is 1st July, 2016 and date of sale is 30th September, 2018.​

Answer 1

Answer:

Sunrise Ltd. purchased a second-hand machine for Rs 5,50,000 and spent Rs 50,000 on its repairs. Depreciation is to be provided

p.a. following Straight Line Method. The machine is sold for Rs 4,40,000. Accounting year is financial year. Calculate the gain (profit) or loss on sale of the machine in cach of the following altcrnutive cases: <br> Case 1 : If date of purchase is 1st April, 2015 and date of sale is 31st March, 2018. <br> Case 2 : If date of purchase is 1st April, 2016 and date of sale is 30th September, 2018. <br> Case 3 : If date of purchase is 1st July, 2015 and date of sale is 31st March, 2018. <br> Case 4 : If date of purchase is 1st July, 2016 and date of sale is 30th September, 2018.