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Furniture of book value of Rs. 20,000 was sold for Rs. 6,000 and new furniture of Rs. 20,000 was purchased. Amount debited towards purchase of new furniture will be:-
  • a)
    Rs. 14,000
  • b)
    Rs. 29,000
  • c)
    Rs. 5,000
  • d)
    Rs. 20,000
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Furniture of book value of Rs. 20,000 was sold for Rs. 6,000 and new f...
Calculation:

The selling price of furniture = Rs. 6,000
The book value of furniture = Rs. 20,000

Therefore, the loss on the sale of furniture = Book value of furniture - Selling price of furniture
= Rs. (20,000 - 6,000)
= Rs. 14,000

The amount debited towards the purchase of new furniture will be the cost of new furniture minus the loss on the sale of old furniture.

Cost of new furniture = Rs. 20,000

Amount debited towards the purchase of new furniture = Cost of new furniture - Loss on sale of old furniture
= Rs. (20,000 - 14,000)
= Rs. 6,000

Therefore, the correct answer is option 'D' - Rs. 20,000.
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Cost of old machinery not consider in purchase of new machine
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Furniture of book value of Rs. 20,000 was sold for Rs. 6,000 and new furniture of Rs. 20,000 was purchased. Amount debited towards purchase of new furniture will be:-a)Rs. 14,000b)Rs. 29,000c)Rs. 5,000d)Rs. 20,000Correct answer is option 'D'. Can you explain this answer?
Question Description
Furniture of book value of Rs. 20,000 was sold for Rs. 6,000 and new furniture of Rs. 20,000 was purchased. Amount debited towards purchase of new furniture will be:-a)Rs. 14,000b)Rs. 29,000c)Rs. 5,000d)Rs. 20,000Correct answer is option 'D'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Furniture of book value of Rs. 20,000 was sold for Rs. 6,000 and new furniture of Rs. 20,000 was purchased. Amount debited towards purchase of new furniture will be:-a)Rs. 14,000b)Rs. 29,000c)Rs. 5,000d)Rs. 20,000Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Furniture of book value of Rs. 20,000 was sold for Rs. 6,000 and new furniture of Rs. 20,000 was purchased. Amount debited towards purchase of new furniture will be:-a)Rs. 14,000b)Rs. 29,000c)Rs. 5,000d)Rs. 20,000Correct answer is option 'D'. Can you explain this answer?.
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