Sunrise limited purchased a second-hand machine for ₹5,50,000 and spent ₹50,000 on its repairs. Depreciation is to be provided at the rate of 10% per annum according to the straight-line method. The machine is sold for ₹4,40,000. Accounting year is financial year. Calculate gain (profit) or loss on sale of the machine in each of the following alternative cases:
A. If date of purchase is 1st April 2014 and date of sale is 31st March 2017.
B. If date of purchases 1st April 2015 and date of sale is 30th September 2017.
C. If date of purchases 1st July 2014 and date of sale is 31st March 2017.
Answers
Answered by
0
Explanation:
Total Cost of Asset (in all cases) = Rs 5,50,000 + Rs 50,000 = Rs 6,00,000 Yearly Depreciation
Similar questions