Question

Q1. Answer the following questions breny.
a. Define Bills of Exchange.
b. Give any two causes of depreciation of assets
c. Write any two advantages of maintaining a Petty cash Book
d. Classify the following as Capital or Revenue Expenditure Profit:
+20,000 spent on obtaining a license for starting a factory
A machine of book value 2,00,000 is sold at 22,20,000.​

Answer 1

Explanation:

Total C.P. of a car = Rs. 75000 + Rs. 9000 + Rs. 1500 = Rs.85500

Given, S.P. = Rs. 120000; [which is less than total cost price]

Therefore, gain = Rs. 120000 - Rs. 85500 = Rs. 34500

Also, gain% =

total C.P.

gain

×100%

=

85500

34500

×100=40%