Question

Question No. 21
• 6 The balance of property at cost
has been Rs 20,000 and Rs 17,000 in
2015and 2016 respectively. The profit
on sale of property of Rs 2000 is
credited to Capital Reserves Account.
New property costing Rs 5000 bought
in 2016. Determine sale of proceeds
from land.​

Answer 1

Step-by-step explanation:

The sale proceeds from property

= 20,000 + 2000 + 5000 – 17,000

= 10,000

Answer 2

Rs. 10,000

Explanation:

• The sale proceeds from the property are defined as the sum of balances, profit on sale and cost of the new property.
• We have a Balance at a cost of Rs. 20000 and 17000 respectively
• We have Profited on sale as Rs. 2000
• We have the Cost of the new property as Rs. 5000
• $\therefore Sale \ of \ proceeds = = 20,000 + 2000 + 5000 -17,000 = 10,000$