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A machinery of ₹ 20000 sold for ₹ 26000 depreciation provided to a person was ₹ 2000 commission paid to selling agents was ₹ 1500 and wages paid to workers for removing machine was ₹ 300 .?
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A machinery of ₹ 20000 sold for ₹ 26000 depreciation provided to a per...
Calculation of Net Profit:
- Selling Price of Machinery: ₹ 26000
- Cost Price of Machinery: ₹ 20000
- Depreciation: ₹ 2000
- Commission paid: ₹ 1500
- Wages paid: ₹ 300
Calculation:
1. Profit on Sale of Machinery = Selling Price - Cost Price - Depreciation
= ₹ 26000 - ₹ 20000 - ₹ 2000
= ₹ 4000
2. Net Profit = Profit on Sale - Commission - Wages
= ₹ 4000 - ₹ 1500 - ₹ 300
= ₹ 2200
Explanation:
When machinery is sold, the profit on the sale is calculated by deducting the cost price and depreciation from the selling price. In this case, the profit on the sale of machinery is ₹ 4000.
To calculate the net profit, we subtract the commission paid to selling agents and the wages paid to workers for removing the machine from the profit on the sale. The net profit in this case is ₹ 2200.
It is important to consider all expenses related to the sale of machinery to accurately determine the net profit earned from the transaction. By calculating the net profit, businesses can assess the profitability of their operations and make informed decisions for future transactions.
- Selling Price of Machinery: ₹ 26000
- Cost Price of Machinery: ₹ 20000
- Depreciation: ₹ 2000
- Commission paid: ₹ 1500
- Wages paid: ₹ 300
Calculation:
1. Profit on Sale of Machinery = Selling Price - Cost Price - Depreciation
= ₹ 26000 - ₹ 20000 - ₹ 2000
= ₹ 4000
2. Net Profit = Profit on Sale - Commission - Wages
= ₹ 4000 - ₹ 1500 - ₹ 300
= ₹ 2200
Explanation:
When machinery is sold, the profit on the sale is calculated by deducting the cost price and depreciation from the selling price. In this case, the profit on the sale of machinery is ₹ 4000.
To calculate the net profit, we subtract the commission paid to selling agents and the wages paid to workers for removing the machine from the profit on the sale. The net profit in this case is ₹ 2200.
It is important to consider all expenses related to the sale of machinery to accurately determine the net profit earned from the transaction. By calculating the net profit, businesses can assess the profitability of their operations and make informed decisions for future transactions.
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A machinery of ₹ 20000 sold for ₹ 26000 depreciation provided to a person was ₹ 2000 commission paid to selling agents was ₹ 1500 and wages paid to workers for removing machine was ₹ 300 .?
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A machinery of ₹ 20000 sold for ₹ 26000 depreciation provided to a person was ₹ 2000 commission paid to selling agents was ₹ 1500 and wages paid to workers for removing machine was ₹ 300 .? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about A machinery of ₹ 20000 sold for ₹ 26000 depreciation provided to a person was ₹ 2000 commission paid to selling agents was ₹ 1500 and wages paid to workers for removing machine was ₹ 300 .? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A machinery of ₹ 20000 sold for ₹ 26000 depreciation provided to a person was ₹ 2000 commission paid to selling agents was ₹ 1500 and wages paid to workers for removing machine was ₹ 300 .?.
A machinery of ₹ 20000 sold for ₹ 26000 depreciation provided to a person was ₹ 2000 commission paid to selling agents was ₹ 1500 and wages paid to workers for removing machine was ₹ 300 .? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about A machinery of ₹ 20000 sold for ₹ 26000 depreciation provided to a person was ₹ 2000 commission paid to selling agents was ₹ 1500 and wages paid to workers for removing machine was ₹ 300 .? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A machinery of ₹ 20000 sold for ₹ 26000 depreciation provided to a person was ₹ 2000 commission paid to selling agents was ₹ 1500 and wages paid to workers for removing machine was ₹ 300 .?.
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