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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.?
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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.
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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.?
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