A trader purchased a machinery for ~ 10,000 in Jan 2004. Depreciation is charged @ 25% diminishing balance. At the end of third year it was sold for ~ 1,000. Profit or Loss on sale of machine will be a. Profit Rs. 2,400 b. Profit Rs. 2,300 c. Loss Rs. 2,406 d. Loss Rs. 3,219

A trader purchased a machinery for ~ 10,000 in Jan 2004. Depreciation is charged @ 25% diminishing balance. At the end of third year it was sold for ~ 1,000. Profit or Loss on sale of machine will be a. Profit Rs. 2,400 b. Profit Rs. 2,300 c. Loss Rs. 2,406 d. Loss Rs. 3,219

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

A trader purchased a machinery for ~ 10,000 in Jan 2004. Depreciation is charged @ 25% diminishing balance. At the end of third year it was sold for ~ 1,000. Profit or Loss on sale of machine will be

Profit Rs. 2,400

Profit Rs. 2,300

Loss Rs. 2,406

Loss Rs. 3,219

Definition Definition Amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item

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