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Standard XII

Mathematics

Contra-Positive

A building st...

Question

A building standing in the books at Rs. $40, 000$ was sold for Rs. $52, 000$ . The profit on sale of building was transferred to profit & loss account thus increasing the net profit to Rs. $1, 80, 000$ . What is the fund from operation?

Rs.

1, 80, 000

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Rs.

1, 92, 000

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Rs.

1, 68, 000

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Rs.

1, 82, 000

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Solution

The correct option is C Rs. $1, 68, 000$
Net Profit 1,80,000
Less : Profit on Sale (12,000)
(Non-trading Profit)
_______
Fund From operation 1,68,000
_

Working Notes:
Calculation of Profit on Sale of Building:
Sales Value 52,000
Less: Book Value (40,000)

Profit on Sale 12,000
__

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(b) A second creditor for Rs. 30,000 accepted machinery valued at Rs. 28,000 in full settlement of his claim.

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A building standing in the books at Rs. 40,000 was sold for Rs. 52,000. The profit on sale of building was transferred to profit & loss account thus increasing the net profit to Rs. 1,80,000. What is the fund from operation?

The correct option is C Rs. 1,68,000Net Profit 1,80,000Less : Profit on Sale (12,000)(Non-trading Profit) _____________Fund From operation 1,68,000 _____________Working Notes:Calculation of Profit on Sale of Building:Sales Value 52,000Less: Book Value (40,000) ________Profit on Sale 12,000 ________

A building standing in the books at Rs. $40, 000$ was sold for Rs. $52, 000$ . The profit on sale of building was transferred to profit & loss account thus increasing the net profit to Rs. $1, 80, 000$ . What is the fund from operation?

The correct option is C Rs. $1, 68, 000$
Net Profit 1,80,000
Less : Profit on Sale (12,000)
(Non-trading Profit)
_______
Fund From operation 1,68,000
_

Working Notes:
Calculation of Profit on Sale of Building:
Sales Value 52,000
Less: Book Value (40,000)

Profit on Sale 12,000
__