If a machinery costing ₹80,000 is sold for ₹70,000 with accumulated depreciation ₹20,000, the profit/loss on sale is: MCQ with Answer and Explanation

Question

Share Report Error

If a machinery costing ₹80,000 is sold for ₹70,000 with accumulated depreciation ₹20,000, the profit/loss on sale is:

A. Profit ₹10,000

B. Profit ₹30,000

C. No profit no loss

D. Loss ₹10,000

Answer: Option A

Solution (By JKSSB Mock Tests)

Book value = 80,000 - 20,000 = 60,000. Sale price 70,000. Profit = 70,000 - 60,000 = ₹10,000.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Accountancy and Book Keeping Questions

Question #1

Share Report

Which accounting principle justifies treating a calculator as an expense rather than a fixed asset?

A. Dual Aspect

B. Materiality

C. Consistency

D. Going Concern

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option B

Explanation:
The Materiality principle states that trivial costs (like a calculator) should be expensed immediately rather than capitalized and depreciated, due to their immaterial impact.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2

Share Report

Budgetary control system involves:

A. Comparing actual figures with budgeted figures

B. Fixing selling price

C. Only preparing cash budget

D. Setting long-term objectives

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option A

Explanation:
Budgetary control is the establishment of budgets relating to responsibilities of executives to the requirements of a policy and the continuous comparison of actual with budgeted results.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping