Question

Sold unused machinery costing Rs 20000 for Rs 19000

Answer 1

Answer:

sold for loss of Rs.1000/-

20000-19000 = 1000

Explanation:

profit or loss on sale of fixed asset is called as capital loss or gain.

CG/CL = CARRYING VALUE - SALE VALUE

loss is shown on the debit side of the p&l a/c as a capital loss.

Answer 2

Answer:

cash a/c---Dr. 2000

profit and loss a/c---Dr. 1000

To machinery a/c. 19000