Question

A company sold its obsolete machinery for Rs. 1,50,000. The book value of the machinery was 5,00,000 and the accountant recorded this difference of Rs. 3,50,000 as an expense. Is this treatment correct? Justify your answer.

Answer 1

Answer:

A company sold its obsolete machinery for Rs. 1,50,000. The book value of the machinery was 5,00,000 and the accountant recorded this difference of Rs. 3,50,000 as an expense. Is this treatment correct? Justify your answer.

Answer 2

$yes \: this \: treament \: is \: correct$

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