Question

Machinery costing rupees 10000 /- and having book value rupees 8000/- was sold to suhas for cash at a profit of rupees 500

Answer 1

Cash A/c............Dr.             8500

To, Machinery A/c                              8000

To, P & L (Profit) A/c                           500

(Being Machinery of Rs. 8000 sold at a profit of Rs. 500 to Suhas)