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Commerce · Q2704

Accounting

Graduate and Post Graduate · Commerce · question 2704

Q2704

A second hand machinery was purchased for Rs. 1,00,000 five years ago and was overhauled by carrying out some current repairs at a cost of Rs. 10,000. It has also an accumulated depreciation of Rs. 50,000. It has been disposed of in the beginning of the sixth year for Rs. 60,000. Profit/loss on such disposal shall be

A.
Profit of Rs. 10,000
B.
Loss of Rs. 50,000
C.
Loss of Rs. 40,000
D.
No profit, no loss
Answer

Answer: Option D

Solution

Answer: Option D
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