The book value of machinery on 01.04.2016 was ₹ 70, 000. Depreciation is charged at 10% p.a under Written Down value method on 31st March every year. The machine was sold for ₹ 50, 000 on 01.8.2017;calculate the Profit/Loss on sale of machinery.
A. Profit ₹ 5,755
B. Profit ₹ 5,000
C. Profit ₹ 10,375
D. Loss ₹ 10,325
Answer:C
The book value of machinery on 01.04.2016 was ₹ 70, 000. Depreciation is charged at 10% p.a under Written Down value method on 31st March every year. The machine was sold for ₹ 50, 000 on 01.8.2017;calculate the Profit/Loss on sale of machinery.
A. Profit ₹ 5,755 B. Profit ₹ 5,000 C. Profit ₹ 10,375 D. Loss ₹ 10,325