Question

M/S Daga & Co. installed a machinery on 01-01-2007 at a cost of Rs.5,00,000. Useful life of the machine is estimated at 10 years. Depreciation is charged under straight line method. In December, 2013, they found that the machine became obsolete and could not be used. It was sold for Rs.50,000. There will be _______ a) Capital loss of Rs.1,50,000 b) Revenue loss of Rs.1,00,000 c) Capital loss of Rs.1,00,000 d) Revenue loss of Rs.1,50,000

Answer 1

option ➡️ d) Revenue loss of Rs.1,50,000

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