Question

Original cost - 2,50,000, Accumulated Deprecation - 50,000, Sale Price - 2,00,000
calculate resulting profit and loss.

• A. Loss 50,000
• B. Profit 50,000
• C. Loss 15000
• D. No Profit No Loss

Answer 1

The correct option is D No Profit No Loss

Solution to the given problem is as under:

Original Cost Rs.250000

Less: Accumulated depreciation Rs. 50000

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Written down value of the asset Rs.200000

Less: Sale Price Rs.200000

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Profit/Loss on sale of asset Rs. NIL

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