Mrs. X purchased equipment for Rs 40,000 on which she spent Rs 6,000 for transportation; Rs 1,500 for broker's commission; Rs 4,500 for installation and Rs 1,000 for foundation work. The equipment is depreciated @ 15% every year on a written down basis. After four years the equipment was sold to Mrs. Y for Rs 35,000 and Rs 800 was paid as commission to the broker. Find out the profit or loss on the sale of the equipment.
Mrs. X purchased equipment for Rs 40,000 on which she spent Rs 6,000 for transportation; Rs 1,500 for broker's commission; Rs 4,500 for installation and Rs 1,000 for foundation work. The equipment is depreciated @ 15% every year on a written down basis. After four years the equipment was sold to Mrs. Y for Rs 35,000 and Rs 800 was paid as commission to the broker. Find out the profit or loss on the sale of the equipment.
Chapter6: Business Expenses
Section: Chapter Questions
Problem 77IIP
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Transcribed Image Text:Mrs. X purchased equipment for Rs 40,000 on which she spent Rs 6,000 for
transportation; Rs 1,500 for broker's commission; Rs 4,500 for installation and
Rs 1,000 for foundation work. The equipment is depreciated @ 15% every year
on a written down basis. After four years the equipment was sold to Mrs. Y for
Rs 35,000 and Rs 800 was paid as commission to the broker. Find out the profit
or loss on the sale of the equipment.
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