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Anu 1 January 2009 our machinery purchased rupees 3 lakh it was sold on on 1 June 2012 for rupees 220000 on and and deamination balance machinery depreciation charge at 7% annum calculate profit or loss sale of machinery?
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Anu 1 January 2009 our machinery purchased rupees 3 lakh it was sold o...
Calculation of Profit or Loss on the Sale of Machinery
Given Information:
- Purchase Date: 1 January 2009
- Purchase Price: Rs. 3,00,000
- Sale Date: 1 June 2012
- Sale Price: Rs. 2,20,000
- Depreciation Rate: 7% per annum
1. Calculation of Depreciation:
Depreciation is the decrease in the value of an asset over time. In this case, the machinery has been in use for 3 years and 5 months (from January 2009 to June 2012).
Depreciation per annum = (Depreciation Rate / 100) * Purchase Price
Depreciation for 3 years = Depreciation per annum * 3
Depreciation for 5 months = (Depreciation per annum / 12) * 5
Total Depreciation = Depreciation for 3 years + Depreciation for 5 months
2. Calculation of Book Value:
Book Value is the value of the asset after deducting the accumulated depreciation from the purchase price.
Book Value = Purchase Price - Total Depreciation
3. Calculation of Profit or Loss:
Profit or Loss is calculated by subtracting the Book Value from the Sale Price.
Profit or Loss = Sale Price - Book Value
Calculation:
Given:
Purchase Price = Rs. 3,00,000
Sale Price = Rs. 2,20,000
Depreciation Rate = 7% per annum
1. Calculation of Depreciation:
Depreciation per annum = (7/100) * Rs. 3,00,000 = Rs. 21,000
Depreciation for 3 years = Rs. 21,000 * 3 = Rs. 63,000
Depreciation for 5 months = (Rs. 21,000 / 12) * 5 = Rs. 8,750
Total Depreciation = Rs. 63,000 + Rs. 8,750 = Rs. 71,750
2. Calculation of Book Value:
Book Value = Rs. 3,00,000 - Rs. 71,750 = Rs. 2,28,250
3. Calculation of Profit or Loss:
Profit or Loss = Rs. 2,20,000 - Rs. 2,28,250 = -Rs. 8,250
Result:
The sale of the machinery resulted in a loss of Rs. 8,250.
Given Information:
- Purchase Date: 1 January 2009
- Purchase Price: Rs. 3,00,000
- Sale Date: 1 June 2012
- Sale Price: Rs. 2,20,000
- Depreciation Rate: 7% per annum
1. Calculation of Depreciation:
Depreciation is the decrease in the value of an asset over time. In this case, the machinery has been in use for 3 years and 5 months (from January 2009 to June 2012).
Depreciation per annum = (Depreciation Rate / 100) * Purchase Price
Depreciation for 3 years = Depreciation per annum * 3
Depreciation for 5 months = (Depreciation per annum / 12) * 5
Total Depreciation = Depreciation for 3 years + Depreciation for 5 months
2. Calculation of Book Value:
Book Value is the value of the asset after deducting the accumulated depreciation from the purchase price.
Book Value = Purchase Price - Total Depreciation
3. Calculation of Profit or Loss:
Profit or Loss is calculated by subtracting the Book Value from the Sale Price.
Profit or Loss = Sale Price - Book Value
Calculation:
Given:
Purchase Price = Rs. 3,00,000
Sale Price = Rs. 2,20,000
Depreciation Rate = 7% per annum
1. Calculation of Depreciation:
Depreciation per annum = (7/100) * Rs. 3,00,000 = Rs. 21,000
Depreciation for 3 years = Rs. 21,000 * 3 = Rs. 63,000
Depreciation for 5 months = (Rs. 21,000 / 12) * 5 = Rs. 8,750
Total Depreciation = Rs. 63,000 + Rs. 8,750 = Rs. 71,750
2. Calculation of Book Value:
Book Value = Rs. 3,00,000 - Rs. 71,750 = Rs. 2,28,250
3. Calculation of Profit or Loss:
Profit or Loss = Rs. 2,20,000 - Rs. 2,28,250 = -Rs. 8,250
Result:
The sale of the machinery resulted in a loss of Rs. 8,250.
Community Answer
Anu 1 January 2009 our machinery purchased rupees 3 lakh it was sold o...
Loss on sale of Rs 14318If u want full solution then ask me.
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Anu 1 January 2009 our machinery purchased rupees 3 lakh it was sold on on 1 June 2012 for rupees 220000 on and and deamination balance machinery depreciation charge at 7% annum calculate profit or loss sale of machinery?
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Anu 1 January 2009 our machinery purchased rupees 3 lakh it was sold on on 1 June 2012 for rupees 220000 on and and deamination balance machinery depreciation charge at 7% annum calculate profit or loss sale of machinery? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Anu 1 January 2009 our machinery purchased rupees 3 lakh it was sold on on 1 June 2012 for rupees 220000 on and and deamination balance machinery depreciation charge at 7% annum calculate profit or loss sale of machinery? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Anu 1 January 2009 our machinery purchased rupees 3 lakh it was sold on on 1 June 2012 for rupees 220000 on and and deamination balance machinery depreciation charge at 7% annum calculate profit or loss sale of machinery?.
Anu 1 January 2009 our machinery purchased rupees 3 lakh it was sold on on 1 June 2012 for rupees 220000 on and and deamination balance machinery depreciation charge at 7% annum calculate profit or loss sale of machinery? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Anu 1 January 2009 our machinery purchased rupees 3 lakh it was sold on on 1 June 2012 for rupees 220000 on and and deamination balance machinery depreciation charge at 7% annum calculate profit or loss sale of machinery? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Anu 1 January 2009 our machinery purchased rupees 3 lakh it was sold on on 1 June 2012 for rupees 220000 on and and deamination balance machinery depreciation charge at 7% annum calculate profit or loss sale of machinery?.
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