Question : The book value of the furniture on 1st April 2019 is Rs. 30,000. Half of this furniture is sold for Rs. 10,000 on 30th September 2019. Depreciation is to be charged on furniture @ 10% p.a. Calculate loss on sale of furniture.
Option 1: Rs 4,250
Option 2: Rs 5,000
Option 3: Rs 2,500
Option 4: None of the above
Answer (1)
25th Jan, 2024
Correct Answer: Rs 4,250
Solution :
Book Value
On 1 April 2019 = 30,000
less Dep 10% PA
(6 Months) = 1500
_______
28,500
Book Value of 1/2 furniture = 28500 * 1/2 = 14250
On 30 September 2019
Selling price =10,000
Loss on sale of furniture =4250
Answer =
Rs 4250
Hence, the correct option is 1.
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