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: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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