Question

A company sold an asset with book value of rs.750 crores at rs.600 crores.
The loss on sale of property or rs? Is credited to statement of profit and loss

Answer 1

Answer:

150 cr

Explanation:

The loss on sale of property is 150 crores

Answer 2

Answer: The loss on sale of property is Rs. 150 Crores.

Explanation:

• Loss on sale of property is the difference between the book value of an asset and the sale price of the asset. In this case, the book value of the asset is Rs. 750 Crores and the sale price is Rs. 600 Crores. Thus, the loss on sale of property is Rs. 150 Crores (750 - 600). This loss is credited to the statement of profit and loss.
• The purpose of crediting the loss to the statement of profit and loss is to adjust the profit and loss account for the effects of the sale. This helps the company to accurately calculate the profit or loss for the period. It also helps in making sure that the financial statements are presented in a true and fair view.
• The loss on sale of property is a non-operating expense and is reported separately in the income statement. This ensures that the impact of the loss on sale of property is not mixed up with the operating profits of the company. It provides the stakeholders with a better understanding of the financial performance of the company.
• The loss on sale of property is also important for tax purposes. It can be used to reduce the taxable income of the company, thus reducing the amount of tax payable.
• In conclusion, the loss on sale of property is credited to the statement of profit and loss for the purpose of adjusting the profit and loss account for the effects of the sale, providing a true and fair view of the financial performance of the company and reducing the amount of tax payable.

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