From the following data, find the value of building sold during the year : Particulars 31.03.2013 (₹) 31.03.2014 (₹) Land and building 2,00,000 1,70,000 Capital reserve Nil 20,000 A piece of land has been sold during the
CS Executive · Cost and Management Accounting · PYQS · December 2014
From the following data, find the value of building sold during the year : Particulars 31.03.2013 (₹) 31.03.2014 (₹) Land and building 2,00,000 1,70,000 Capital reserve Nil 20,000 A piece of land has been sold during the year and the profit on sale has been credited to capital reserve. Depreciation charged on building during the year is ₹5,000; no additions have been made under this head during the year.
Answer & Explanation:
Correct Answer: Option (D)
Correct answer: (D) ₹45,000.. Book value of disposal = 2,00,000−5,000−1,70,000 = 25,000; proceeds = 25,000+20,000 = 45,000. The narrative refers to land sold.
Topics: Financial Statement Analysis
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