Question

On 1 July, 2016 M/s Ramai & Co. sold Machinery for 7,000, the original cost 10,000/- which was
purchased on 11 April, 2015. Find out the profit or loss on sale of Machinery by charging depreciation at
10% p.a. on original cost on 31st March every year.


plz explain it fully its urgent​

Answer 1

Original cost= rs 10000

Cost after considering the depreciation as on March 31, 2016= 10000-(10/100)10000= 10000-1000= rs 9000

Selling price= rs 7000

Loss= 9000-7000= rs 2000

#BAL #answerwithquality