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Commerce · Q2388

Accounting

Graduate and Post Graduate · Commerce · question 2388

Q2388

The written down value of a plant is Rs. 60,000 (the original value being Rs. 1,00,000). It is sold for Rs. 1,20,000 during the current financial year. Which of the following is true in this regard?

A.
Capital profit = Rs. 60,000
Answer
B.
Revenue profit = Rs. 60,000
C.
Capital profit = Rs. 20,000 and Revenue profit = Rs. 40,000
D.
Capital profit = Rs. 1,20,000

Answer: Option A

Solution

Answer: Option A
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