New Enroll for RBI, PFRDA & NABARD Intro Class! April 18 at 9:15 PM

    Question

    The written down value of Machinery is ₹ 12,00,000.

    The original cost of the Machinery is ₹ 20,00,000. It is sold for ₹ 24,00,000 during the year 2022-23. The result is:
    A Capital Profit ₹ 12,00,000 Correct Answer Incorrect Answer
    B Capital Profit ₹ 24,00,000 Correct Answer Incorrect Answer
    C Revenue Profit ₹ 12,00,000 Correct Answer Incorrect Answer
    D Capital Profit ₹ 4,00,000 and Revenue Profit ₹ 8,00,000 Correct Answer Incorrect Answer

    Solution

    Amount over and above the original cost of the asset i.e. 400,000 will be capital profit and the amount up to which depreciation is charged in P&L will be revenue in nature i.e., 8,00,000.

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