Question

In the books of D Ltd. the machinery account shows a debit balance of Rs. 60,000 as on

April 1, 2010 and provision for Depreciation Account at Rs. 24,000. The machinery was sold

on September 30, 2010 for Rs. 30,000. The company charges depreciation @ 20% p.a. on

diminishing balance method. Profit / Loss on sale of the machinery is (1)

A. 13,200 Profit

B. 13,200 loss

C. 6,800 profit

D. 6,800 loss

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Answer 1

Answer:

c is equals to 6800 profit