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An asset was bought by Aaradhya Ltd. on 1st July, 2016 for Rs. 1,50,000, rate of depreciation was 15% for 10 months. It was sold on 31st March, 2017 at Rs. 2,00,000. Find the profit or loss to be transferred to P and L a/c for the year 2016-17. Rs. 10,200 Rs. 12,000 Rs. 70,250 Rs. 3,29,750 Rs. 60,200?
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An asset was bought by Aaradhya Ltd. on 1st July, 2016 for Rs. 1,50,00...
Calculation of Depreciation:
The asset was bought on 1st July, 2016 and was sold on 31st March, 2017. So, the asset was used for a period of 9 months in the financial year 2016-17.
The rate of depreciation is given as 15% for 10 months. So, for 9 months, the depreciation rate can be calculated as follows:
Depreciation Rate = (Depreciation for 10 months / Time period for 10 months) * Time period for 9 months
= (15% / 10) * 9
= 13.5%
Calculation of Depreciation Amount:
The asset was bought for Rs. 1,50,000. So, the depreciation amount for 9 months can be calculated as follows:
Depreciation Amount = Depreciation Rate * Cost of Asset
= 13.5% * Rs. 1,50,000
= Rs. 20,250
Calculation of Profit or Loss:
The asset was sold for Rs. 2,00,000. So, the profit or loss can be calculated as follows:
Profit or Loss = Selling Price - Cost Price - Depreciation Amount
= Rs. 2,00,000 - Rs. 1,50,000 - Rs. 20,250
= Rs. 29,750
Transfer to P and L A/c:
Since the profit or loss is positive, it means there is a profit of Rs. 29,750. This profit will be transferred to the Profit and Loss Account for the year 2016-17.
Hence, the correct answer is Rs. 29,750.
The asset was bought on 1st July, 2016 and was sold on 31st March, 2017. So, the asset was used for a period of 9 months in the financial year 2016-17.
The rate of depreciation is given as 15% for 10 months. So, for 9 months, the depreciation rate can be calculated as follows:
Depreciation Rate = (Depreciation for 10 months / Time period for 10 months) * Time period for 9 months
= (15% / 10) * 9
= 13.5%
Calculation of Depreciation Amount:
The asset was bought for Rs. 1,50,000. So, the depreciation amount for 9 months can be calculated as follows:
Depreciation Amount = Depreciation Rate * Cost of Asset
= 13.5% * Rs. 1,50,000
= Rs. 20,250
Calculation of Profit or Loss:
The asset was sold for Rs. 2,00,000. So, the profit or loss can be calculated as follows:
Profit or Loss = Selling Price - Cost Price - Depreciation Amount
= Rs. 2,00,000 - Rs. 1,50,000 - Rs. 20,250
= Rs. 29,750
Transfer to P and L A/c:
Since the profit or loss is positive, it means there is a profit of Rs. 29,750. This profit will be transferred to the Profit and Loss Account for the year 2016-17.
Hence, the correct answer is Rs. 29,750.
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An asset was bought by Aaradhya Ltd. on 1st July, 2016 for Rs. 1,50,000, rate of depreciation was 15% for 10 months. It was sold on 31st March, 2017 at Rs. 2,00,000. Find the profit or loss to be transferred to P and L a/c for the year 2016-17. Rs. 10,200 Rs. 12,000 Rs. 70,250 Rs. 3,29,750 Rs. 60,200?
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An asset was bought by Aaradhya Ltd. on 1st July, 2016 for Rs. 1,50,000, rate of depreciation was 15% for 10 months. It was sold on 31st March, 2017 at Rs. 2,00,000. Find the profit or loss to be transferred to P and L a/c for the year 2016-17. Rs. 10,200 Rs. 12,000 Rs. 70,250 Rs. 3,29,750 Rs. 60,200? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about An asset was bought by Aaradhya Ltd. on 1st July, 2016 for Rs. 1,50,000, rate of depreciation was 15% for 10 months. It was sold on 31st March, 2017 at Rs. 2,00,000. Find the profit or loss to be transferred to P and L a/c for the year 2016-17. Rs. 10,200 Rs. 12,000 Rs. 70,250 Rs. 3,29,750 Rs. 60,200? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for An asset was bought by Aaradhya Ltd. on 1st July, 2016 for Rs. 1,50,000, rate of depreciation was 15% for 10 months. It was sold on 31st March, 2017 at Rs. 2,00,000. Find the profit or loss to be transferred to P and L a/c for the year 2016-17. Rs. 10,200 Rs. 12,000 Rs. 70,250 Rs. 3,29,750 Rs. 60,200?.
An asset was bought by Aaradhya Ltd. on 1st July, 2016 for Rs. 1,50,000, rate of depreciation was 15% for 10 months. It was sold on 31st March, 2017 at Rs. 2,00,000. Find the profit or loss to be transferred to P and L a/c for the year 2016-17. Rs. 10,200 Rs. 12,000 Rs. 70,250 Rs. 3,29,750 Rs. 60,200? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about An asset was bought by Aaradhya Ltd. on 1st July, 2016 for Rs. 1,50,000, rate of depreciation was 15% for 10 months. It was sold on 31st March, 2017 at Rs. 2,00,000. Find the profit or loss to be transferred to P and L a/c for the year 2016-17. Rs. 10,200 Rs. 12,000 Rs. 70,250 Rs. 3,29,750 Rs. 60,200? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for An asset was bought by Aaradhya Ltd. on 1st July, 2016 for Rs. 1,50,000, rate of depreciation was 15% for 10 months. It was sold on 31st March, 2017 at Rs. 2,00,000. Find the profit or loss to be transferred to P and L a/c for the year 2016-17. Rs. 10,200 Rs. 12,000 Rs. 70,250 Rs. 3,29,750 Rs. 60,200?.
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An asset was bought by Aaradhya Ltd. on 1st July, 2016 for Rs. 1,50,000, rate of depreciation was 15% for 10 months. It was sold on 31st March, 2017 at Rs. 2,00,000. Find the profit or loss to be transferred to P and L a/c for the year 2016-17. Rs. 10,200 Rs. 12,000 Rs. 70,250 Rs. 3,29,750 Rs. 60,200?, a detailed solution for An asset was bought by Aaradhya Ltd. on 1st July, 2016 for Rs. 1,50,000, rate of depreciation was 15% for 10 months. It was sold on 31st March, 2017 at Rs. 2,00,000. Find the profit or loss to be transferred to P and L a/c for the year 2016-17. Rs. 10,200 Rs. 12,000 Rs. 70,250 Rs. 3,29,750 Rs. 60,200? has been provided alongside types of An asset was bought by Aaradhya Ltd. on 1st July, 2016 for Rs. 1,50,000, rate of depreciation was 15% for 10 months. It was sold on 31st March, 2017 at Rs. 2,00,000. Find the profit or loss to be transferred to P and L a/c for the year 2016-17. Rs. 10,200 Rs. 12,000 Rs. 70,250 Rs. 3,29,750 Rs. 60,200? theory, EduRev gives you an
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