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Standard XII

Accountancy

Revaluation of Assets

A machine of ...

Question

A machine of Rs. 3000 was sold for Rs. 4,200. Depreciation provision to date was Rs. 400 and commission paid to selling agent was Rs. 420 and wages paid to workers for removing the machine was Rs. 30 profit on sale of machine will be ________.

Rs. 1,200

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Rs. 1,000

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Rs. 1,150

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None of these

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Solution

The correct option is C Rs. 1,150
Profit on sale of Machinery = Actual amount earned - Value of machinery
= (4,200 - 420 - 30) - (3000 - 400)
= 3,750 - 2,600
= RS-1,150.

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A machine of Rs. 3000 was sold for Rs. 4,200. Depreciation provision to date was Rs. 400 and commission paid to selling agent was Rs. 420 and wages paid to workers for removing the machine was Rs. 30 profit on sale of machine will be ________.

The correct option is C Rs. 1,150Profit on sale of Machinery = Actual amount earned - Value of machinery = (4,200 - 420 - 30) - (3000 - 400) = 3,750 - 2,600 = RS-1,150.

The correct option is C Rs. 1,150
Profit on sale of Machinery = Actual amount earned - Value of machinery
= (4,200 - 420 - 30) - (3000 - 400)
= 3,750 - 2,600
= RS-1,150.