Question

Original cost= Rs.1,37,000, Salvage value= Rs.17,000, Dep rate is 10% WDV Method. Asset sold for Rs.1,00,000 at the end of 3rd year. Gain/Loss is

• A. Rs. 127 (gain)
• B. Rs. 520 (loss)
• C. Rs. 180 (gain)
• D. Rs. 132 (loss)

Answer 1

The correct option is A Rs. 127 (gain)

Year	Value	Depreciation	WDV
1	1,37,000	13,700	1,23,300
2	1,23,300	12,330	1,10,970
3	1,10,970	11,097	99,873

Gain = Rs. 1,00,000 - Rs. 99,873
= Rs. 127