Commerce Exam  >  Commerce Questions  >  I) During the year, the company had sold 40% ... Start Learning for Free
I) During the year, the company had sold 40% of it's investment held by it beginning of the year at a profit of Rs 25,000. II) during the year, machine costing Rs 12,000 ( accumulated depreciation Rs 7,2000) was sold for Rs 6,000.?
Most Upvoted Answer
I) During the year, the company had sold 40% of it's investment held b...
Explanation:

I) Sale of Investment:
- The company sold 40% of its investment held at the beginning of the year, which resulted in a profit of Rs 25,000.
- This transaction implies that the company had invested a certain amount at the beginning of the year and sold 40% of that investment during the year.
- The profit of Rs 25,000 indicates that the selling price of the investment was higher than its cost price.

II) Sale of Machine:
- The company sold a machine during the year at a selling price of Rs 6,000.
- The machine had a cost of Rs 12,000, and the accumulated depreciation on the machine was Rs 7,200.
- Accumulated depreciation represents the total depreciation charged on the machine since its acquisition.
- The machine's net book value (cost - accumulated depreciation) was Rs 12,000 - Rs 7,200 = Rs 4,800.
- As the selling price of the machine (Rs 6,000) is higher than its net book value (Rs 4,800), the company made a profit on the sale of the machine.

Summary:
- The company sold 40% of its investment held at the beginning of the year and earned a profit of Rs 25,000.
- Additionally, the company sold a machine during the year at a selling price of Rs 6,000, which was higher than its net book value of Rs 4,800.
- Both transactions resulted in profits for the company.

Key Points:
- 40% of the investment held at the beginning of the year was sold.
- The profit earned on the sale of the investment was Rs 25,000.
- The machine had a cost of Rs 12,000 and accumulated depreciation of Rs 7,200.
- The selling price of the machine was Rs 6,000.
- The net book value of the machine was Rs 4,800.
- The company made a profit on the sale of the machine.
Attention Commerce Students!
To make sure you are not studying endlessly, EduRev has designed Commerce study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Commerce.
Explore Courses for Commerce exam

Similar Commerce Doubts

Top Courses for Commerce

I) During the year, the company had sold 40% of it's investment held by it beginning of the year at a profit of Rs 25,000. II) during the year, machine costing Rs 12,000 ( accumulated depreciation Rs 7,2000) was sold for Rs 6,000.?
Question Description
I) During the year, the company had sold 40% of it's investment held by it beginning of the year at a profit of Rs 25,000. II) during the year, machine costing Rs 12,000 ( accumulated depreciation Rs 7,2000) was sold for Rs 6,000.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about I) During the year, the company had sold 40% of it's investment held by it beginning of the year at a profit of Rs 25,000. II) during the year, machine costing Rs 12,000 ( accumulated depreciation Rs 7,2000) was sold for Rs 6,000.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for I) During the year, the company had sold 40% of it's investment held by it beginning of the year at a profit of Rs 25,000. II) during the year, machine costing Rs 12,000 ( accumulated depreciation Rs 7,2000) was sold for Rs 6,000.?.
Solutions for I) During the year, the company had sold 40% of it's investment held by it beginning of the year at a profit of Rs 25,000. II) during the year, machine costing Rs 12,000 ( accumulated depreciation Rs 7,2000) was sold for Rs 6,000.? in English & in Hindi are available as part of our courses for Commerce. Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of I) During the year, the company had sold 40% of it's investment held by it beginning of the year at a profit of Rs 25,000. II) during the year, machine costing Rs 12,000 ( accumulated depreciation Rs 7,2000) was sold for Rs 6,000.? defined & explained in the simplest way possible. Besides giving the explanation of I) During the year, the company had sold 40% of it's investment held by it beginning of the year at a profit of Rs 25,000. II) during the year, machine costing Rs 12,000 ( accumulated depreciation Rs 7,2000) was sold for Rs 6,000.?, a detailed solution for I) During the year, the company had sold 40% of it's investment held by it beginning of the year at a profit of Rs 25,000. II) during the year, machine costing Rs 12,000 ( accumulated depreciation Rs 7,2000) was sold for Rs 6,000.? has been provided alongside types of I) During the year, the company had sold 40% of it's investment held by it beginning of the year at a profit of Rs 25,000. II) during the year, machine costing Rs 12,000 ( accumulated depreciation Rs 7,2000) was sold for Rs 6,000.? theory, EduRev gives you an ample number of questions to practice I) During the year, the company had sold 40% of it's investment held by it beginning of the year at a profit of Rs 25,000. II) during the year, machine costing Rs 12,000 ( accumulated depreciation Rs 7,2000) was sold for Rs 6,000.? tests, examples and also practice Commerce tests.
Explore Courses for Commerce exam

Top Courses for Commerce

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev