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Standard XI

Accountancy

Asset Disposal

Gain or loss ...

Question

Gain or loss on disposal of an asset is the difference between the sale price of an asset and ___

the cost of that asset

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the cost or valuation less depreciation up to the beginning of the year in which disposal took place

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the cost of the asset less depreciation up to the end of the year in which disposal took place

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the cost of the asset less accumulated depreciation up to the date of disposal

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Solution

The correct option is D
the cost of the asset less accumulated depreciation up to the date of disposal

Gain or loss on disposal of an asset is the difference between the sale price of an asset and the cost or valuation less accumulated depreciation up to the date of disposal.

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Similar questions

When accumulated depreciation is transferred to asset disposal account, Which of the following is correct?

Q. On the basis of following information answer the following question.

The balance in accumulated depreciation account of a company at the beginning of year

2008 - 2009

was Rs

2, 00, 000

when the original cost of the assets amounted to Rs

10, 00, 000

. The company charges

10 %

depreciation on a SLM basis for all assets including those which have been either purchased or sold during the year. One such asset costing Rs.

5, 00, 000

which accumulated depreciation as at the beginning of the year of Rs

80, 000

was disposed off during the year.

Depreciation from the current year = ?

Q. On the basis of following information answer the following question.

The balance in accumulated depreciation account of a company at the beginning of year

2008 - 2009

was Rs

2, 00, 000

when the original cost of the assets amounted to Rs

10, 00, 000

. The company charges

10 %

depreciation on a SLM basis for all assets including those which have been either purchased or sold during the year. One such asset costing Rs.

5, 00, 000

which accumulated depreciation as at the beginning of the year of Rs

80, 000

was disposed off during the year.

The balance of the accumulated depreciation account at the end of the year considering the current year's depreciation charge would be ______________.

A fixed asset costing Rs. 12,000 was sold for Rs. 5,000. At the date of disposal, it's net book value is Rs. 2,000.
What is the profit or loss on disposal of this fixed asset?

Q. Depreciation = Cost of asset less scrap value / Estimated working _____ of assets.

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Gain or loss on disposal of an asset is the difference between the sale price of an asset and ___

The correct option is D the cost of the asset less accumulated depreciation up to the date of disposal Gain or loss on disposal of an asset is the difference between the sale price of an asset and the cost or valuation less accumulated depreciation up to the date of disposal.

The correct option is D
the cost of the asset less accumulated depreciation up to the date of disposal

Gain or loss on disposal of an asset is the difference between the sale price of an asset and the cost or valuation less accumulated depreciation up to the date of disposal.