Question

@ MR Bayan Purchased Machinay on 1/4/2017 at ₹500,000. Dep is charged @ 10% p o WDB at the end of every year ie 31 march. He sold the Machinery on 30 sept2019 at 350,000 Find Profit/ loss on sale of Machinery ​

Answer 1

Answer:

in this question Mr bayan having loss so the loss is 150000

Answer 2

Explanation:

MR Bayan Purchased Machinery on 1/4/2017 at ₹500,000

Every year the machine depreciates at the rate of 10 percent

It means that value of machine in 2018 will be ;

=500,000 - (0.10*500,000)

=450,000

Now value of machine in next year would be;

=450,000 - (0.10*450,000)

=405,000

So in 2019 machine value should be 405,000 and if Bayan sold it a lower price of 350,000, then he has sold it in loss of around 55,000