Question

Suppose asset is purchased for Rs 150000, Accumulated depreciation on SLM is rs. 75000. and asset is now sold for Rs. 70000. calculate gain or loss?

• A. Loss of Rs 5000
• B. Loss of Rs 80000
• C. Gain of Rs 70,000
• D. No gain or loss

Answer 1

The correct option is A

Loss of Rs 5000

Loss of rs 5000 (75000-70000). Gain/ (Loss) is the difference between the value at which asset is sold and its book value.