A second hand car is purchased for 2,00,000 and sold at 1,40,000 after two years. If depreciation is charged @ 10% on SLM method, find the profit or loss on sale of the car?

✅ B. Payments

Option A : Receipts Option B : Payments Option C : Income Option D : Expense Correct Answer : Payments Read more

✅ A. Postage stamps

Option A : Postage stamps Option B : B/R Option C : Cheque Deposited with Bank Option D : B/R endorsed Correct Answer : Postage stamps Read more

✅ B. Vehicle

Option A : Stock Option B : Vehicle Option C : Fixed deposit in bank Option D : Both and Correct Answer : Both and above Read more

✅ B. Debit balance of cash book

Option A : Credit balance of cash book Option B : Debit balance of cash book Option C : Bank overdraft Option D : Adjusted balance of cash book Correct Answer : Debit balance of cash book Read more

✅ C. Results in the acquisition of a permanent asset

Option A : Benefits the current accounting period Option B : Will benefit the next accounting period Option C : Results in the acquisition of a permanent asset Option D : Results in the acquisition of a current asset Correct Answer : Results in the acquisition of a permanent asset Read more

✅ C. Historical cost “ Depreciation portion thereof

Option A : Replacement cost “ Accumulated Depreciation Option B : Historical cost “ Salvage Value Option C : Historical cost “ Depreciation portion thereof Option D : Original cost adjusted for general price-level changes Correct Answer : Historical cost “ Depreciation portion thereof Read more

✅ C. Bank overdraft

Option A : Bank balance Option B : Cash at bank Option C : Bank overdraft Option D : Bank underdraft Correct Answer : Bank overdraft Read more

✅ C. Obsolescence

Option A : Routine repair and maintenance Option B : Misuse Option C : Obsolescence Option D : Wear and tear Correct Answer : Obsolescence Read more