Question

sold an old machine standing in the books at rs. 5000 for rs. 4500
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Answer 1

Explanation:

Cash or bank acct Dr 3000

Profit & loss acct Dr 2000

To Machinery acct 5000

Since machinery worth rs 5000 is sold for rs 3000 the buisness will incur a loss of 2000 which will debited to pl acct and machinery being real acct is going out of buisness thus is credited.and cash is coming in buisness so cash acct is debited.

But if the payment is received as cheque then debit bank acct instead of cash.

Answer 2

Answer:

SP = 4500

CP = 5000

CP > SP = LOSS

LOSS = 5000-4500=500

LOSS % = 500×100/5000= 10%