In the books of D. Ltd. the machinery account shows a debit balance of Rs.60, 000 as
Fantastic news! We've Found the answer you've been seeking!
Question:
In the books of D. Ltd. the machinery account shows a debit balance of Rs.60, 000 as on April 1st, 2003. The machinery was sold on September 30, 2004 for Rs.30, 000. The company charges depreciation @ 20% p.a. (FY April to March) on diminishing balance method. What will be the Profit or Loss on sale of machinery?
(a) Rs.13, 200 Profit.
(b) Rs.13, 200 Losses.
(c) Rs.6, 800 Profit.
(d) Rs.6, 800 Losses.
Related Book For
Modern Advanced Accounting in Canada
ISBN: 978-1259087554
7th edition
Authors: Hilton Murray, Herauf Darrell
Posted Date: