A machine acquired for Rs. 3,60,000 on 1st April 2006 and depreciated at 10% on WDV was sold for Rs. 3,00,000 on 31st March 2009. Depreciation is time apportioned. Expenses of disposal amounted to Rs. 3,000.
What is the gain or loss on disposal of the machine to be reported in?

Rs. 1,12,000 gain

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Rs. 34,560 loss

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Rs. 34,560 gain

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Rs. 1,47,440 loss

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is C
Rs. 34,560 gain

Year Value Deprec
- iation WDV

2006-07 3,60,000 36,000 3,24,000

2007-08 3,24,000 32,400 2,91,600

2008-09 2,91,600 29,160 2,62,440

Gain
= Rs. 3,00,000 - Rs. 2,62,440 - Rs. 3,000
= Rs. 34,560

Suggest Corrections

Similar questions

A vehicle acquired for Rs 60,000 on 1st September 2005 and depreciated at 20% on WDV was sold for Rs. 4,000 on 31st March 2011. Expenses of disposal was Rs. 200.
What is the gain or loss on disposal?

A firm purchased a machine on 1st Jan 1998 for Rs. 37,000 and spent Rs. 3,000 on its installation. Depreciation is written off at the rate of 10% under WDV method. Accounts are closed on 31st December every year. On 30th June 2002, the machine was disposed off for Rs. 20,000. Profit & loss account shall be ___ by ___

Prakash Trading Company Purchased a machine worth Rs 77,600 and installed at a cost Rs 2,400 on 1st October 2006. On 1st April 2007 an additional Machine costing Rs 40,000 was purchased. The machine purchased on 1st April 2007 having become obsolete and was Sold for Rs 22,000 on 1st October 2009, and a new machine worth Rs 60,000 was purchased on 1st November 2009.
The depreciation was provided annually on 31st March @ 10% p.a. on original cost of machine.
show Machinery Account for the year 2006-07, 2007-08, 2008-09 and 2009-10

M/s Lokesh Fabrics purchased a Textile Machine on April 1, 2001, for Rs 1,00,000. On July 1, 2002, another machine costing Rs 2,50,000 was purchased. The machine purchased on April 1, 2001, was sold for Rs 25,000 on October 1, 2005. The company charges depreciation @ $15 %$ per annum on the straight-line method. Prepare Machinery account and Machinery disposal account for the year ended March 31, 2006.

M/s Sagar Limited purchased a machinery for Rs 3,00,000 on 1st April 2008 additional machinery was acquired for Rs 3,00,000 on 30th September 2009 and for Rs 50,000 on 1st April 2011.
Machinery which was purchased on 30th September 2009 was sold for Rs 2,25,000 on 30th September 2011
You are required to give Machinery Account Depreciation Account for the year ended 31st March 2009, 31st March 2010, 31st March 2011, and 31st March 2012, taking into account depreciation @ 10% p.a. on written down value method

Join BYJU'S Learning Program

Year	Value	Deprec - iation	WDV
2006-07	3,60,000	36,000	3,24,000
2007-08	3,24,000	32,400	2,91,600
2008-09	2,91,600	29,160	2,62,440

A machine acquired for Rs. 3,60,000 on 1st April 2006 and depreciated at 10% on WDV was sold for Rs. 3,00,000 on 31st March 2009. Depreciation is time apportioned. Expenses of disposal amounted to Rs. 3,000. What is the gain or loss on disposal of the machine to be reported in?

The correct option is C Rs. 34,560 gain Year Value Deprec - iation WDV 2006-07 3,60,000 36,000 3,24,000 2007-08 3,24,000 32,400 2,91,600 2008-09 2,91,600 29,160 2,62,440 Gain = Rs. 3,00,000 - Rs. 2,62,440 - Rs. 3,000 = Rs. 34,560

A machine acquired for Rs. 3,60,000 on 1st April 2006 and depreciated at 10% on WDV was sold for Rs. 3,00,000 on 31st March 2009. Depreciation is time apportioned. Expenses of disposal amounted to Rs. 3,000.
What is the gain or loss on disposal of the machine to be reported in?

The correct option is C
Rs. 34,560 gain

Year Value Deprec
- iation WDV

2006-07 3,60,000 36,000 3,24,000

2007-08 3,24,000 32,400 2,91,600

2008-09 2,91,600 29,160 2,62,440

Gain
= Rs. 3,00,000 - Rs. 2,62,440 - Rs. 3,000
= Rs. 34,560