Suppose asset is purchased for Rs 200000, Accumulated depreciation is rs. 170000. and asset is now sold for Rs. 35000. calculate gain or loss?

Profit of Rs 35,000

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Gain of Rs 5,000

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Loss of Rs 1,65,000

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Loss of Rs 2,500

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Solution

The correct option is B
Gain of Rs 5,000

Gain of rs 5000 (35000-30000). Gain/(Loss) is the difference between the value at which asset is sold and its book value. Hence book value is 30000 ( 200000- 170000). And aseet is sold for Rs 35000.

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Suppose asset is purchased for Rs 200000, Accumulated depreciation is rs. 170000. and asset is now sold for Rs. 35000. calculate gain or loss?

The correct option is B Gain of Rs 5,000 Gain of rs 5000 (35000-30000). Gain/(Loss) is the difference between the value at which asset is sold and its book value. Hence book value is 30000 ( 200000- 170000). And aseet is sold for Rs 35000.

The correct option is B
Gain of Rs 5,000

Gain of rs 5000 (35000-30000). Gain/(Loss) is the difference between the value at which asset is sold and its book value. Hence book value is 30000 ( 200000- 170000). And aseet is sold for Rs 35000.