In the books of D Ltd. the machinery account shows a debit balance of Rs.60,000 as on April 1,2017.The machinery was sold on March 31, 2018 for Rs.30,000. The company charges depreciation @ 20% p.a. on diminishing balance method. Profit/Loss on sale of the machinery will be .................

Rs 13200 profit

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

Rs 18000 loss

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

Rs 18000 profit

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

Rs 13200 loss

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

Open in App

Solution

The correct option is B
Rs 18000 loss

Particulars Amount

Book value on 01-04-2017 60000

Depreciation for the year 12000

WDV on 31-03-2018 48000

Loss on sale=48000-30000=18000

Suggest Corrections

Similar questions

Q. In the books of SZ Ltd. the machinery account shows a debit balance of Rs. 60,000 as on 1.4.2015. The machinery was sold on 30.9.2016 for 30,000. The company charges depreciation @ 20 % p.a on diminishing balance method. Profit/Loss on sale = ?

Q. In the books of D Ltd. the machinery account shows a debit balance of Rs. 1,20,000 as on April 1, 2013. The machinery was sold on September 30,2014 for Rs. 60,000. The company charges depreciation @ 20% p.a. on diminishing balance method.
Depreciation for 2014-2015 and loss on sale will be:

Q. A company purchased a machinery for ₹ 50,000 on 1st October, 2015. Another machinery costing ₹10,000 was purchased on 1st December, 2016. On 31st March, 2018, the machinery purchased in 2015 was sold at a loss of ₹ 5,000. The company charges depreciation @ 15% p.a. on Diminishing Balance Method. Accounts are closed on 31st March every year. Prepare the Machinery Account for 3 years.

Q. A company purchased a machinery for ₹ 50,000 on 1st October, 2016. Another machinery costing ₹ 10,000 was purchased on 1st December, 2017. On 31st March, 2019, the machinery purchased in 2016 was sold at a loss of ₹ 5,000. The company charges depreciation @ 15% p.a. on Diminishing Balance Method. Accounts are closed on 31st March every year. Prepare the Machinery Account for 3 years.

On 1st April 2014, X Ltd purchased a machinery for Rs.12,00,000. On 1st October 2016 a part of the machinery purchased on 1st April 2014 for Rs. 80,000 was sold for Rs. 45,000 and a new machinery at the cost of Rs. 1,58,000 was purchased and installed on the same date. The company has adopted the method of providing 10 % per annum depreciation on the diminishing balance of the machinery.

Show the necessary ledger accounts assuming that provision for depreciation account and machinery disposal account is maintained. The accounting year ends on 31st March.

Join BYJU'S Learning Program

Particulars	Amount
Book value on 01-04-2017	60000
Depreciation for the year	12000
WDV on 31-03-2018	48000

In the books of D Ltd. the machinery account shows a debit balance of Rs.60,000 as on April 1,2017.The machinery was sold on March 31, 2018 for Rs.30,000. The company charges depreciation @ 20% p.a. on diminishing balance method. Profit/Loss on sale of the machinery will be .................

The correct option is B Rs 18000 loss Particulars Amount Book value on 01-04-2017 60000 Depreciation for the year 12000 WDV on 31-03-2018 48000 Loss on sale=48000-30000=18000

The correct option is B
Rs 18000 loss

Particulars Amount

Book value on 01-04-2017 60000

Depreciation for the year 12000

WDV on 31-03-2018 48000

Loss on sale=48000-30000=18000