Question : From the following information, : Particulars Closing Balance (Rs) Opening Balance (Rs) Machinery (at cost) 4,20,000 4,00,000 Accumulated depreciation 1,10,000 1,00,000 Patents 1,60,000 ...

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Question : From the following information, :

Particulars Closing Balance (Rs) Opening Balance (Rs)

Machinery (at cost) 4,20,000 4,00,000

Accumulated depreciation 1,10,000 1,00,000

Patents 1,60,000 2,80,000

Additional Information:
1. During the year, a machine costing Rs 40,000 with an accumulated depreciation of Rs 24,000 was sold for Rs 20,000.
2. Patents written off were Rs 40,000 and some patents were sold at a profit of Rs 20,000.
Question:
Value of patents sold ____________.
Option 1: Rs 40,000
Option 2: Rs 60,000
Option 3: Rs 1,00,000
Option 4: None of the above.

Team Careers360 13th Jan, 2024

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Answer (1)

Team Careers360 25th Jan, 2024

Correct Answer: Rs 1,00,000

Solution : Answer = value of the patent sold of Rs 1,00,000

Machinery A/c
To Bal c/d	4,00,000	By Bank(sale)	20,000
To Profit & loss A/c(Profit)	4,000	By Accumulated dep	24,000
To Bank(Purchases)(b/f)	80,000	By bal c/d	4,20,000
	4,84,000		4,84,000

Accumulated dep A/c
To machinery A/c	24,000	By Bal c/d	1,00,000
To Bal c/d	1,10,000	By Profit & loss A/c(b/f)	34,000
	1,34,000		1,34,000

C.P	40,000
Accumulated dep	24,000
Book value	16,000
- S.P.	(20,000)
Profit	4,000

Patent a/c
To Bal c/d	2,80,000	By Bank(sale)	1,00,000(b/f)
To Profit & Loss	20,000	By Profit & loss(written off)	40,000
		By Bal c/d	1,60,000
	3,00,000		3,00,000

Hence, the correct option is 3.

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Question : From the following information, :

Particulars	Closing Balance (Rs)	Opening Balance (Rs)
Machinery (at cost)	4,20,000	4,00,000
Accumulated depreciation	1,10,000	1,00,000
Patents	1,60,000	2,80,000

Additional Information:
1. During the year, a machine costing Rs 40,000 with an accumulated depreciation of Rs 24,000 was sold for Rs 20,000.
2. Patents written off were Rs 40,000 and some patents were sold at a profit of Rs 20,000.
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Particulars	Closing Balance (Rs)	Opening Balance (Rs)
Machinery (at cost)	4,20,000	4,00,000
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Patents	1,60,000	2,80,000

Additional Information:
1. During the year, a machine costing Rs 40,000 with an accumulated depreciation of Rs 24,000 was sold for Rs 20,000.
2. Patents written off were Rs 40,000 and some patents were sold at a profit of Rs 20,000.
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2. Patents written off were Rs 40,000 and some patents were sold at a profit of Rs 20,000.
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Machinery (at cost)	4,20,000	4,00,000
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Patents	1,60,000	2,80,000

Additional Information:
1. During the year, a machine costing Rs 40,000 with its accumulated depreciation of Rs 24,000 was sold for Rs 20,000.
2. Patents written off were Rs 40,000 and some patents were sold at a profit of Rs 20,000.
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Question : From the following information, :

Particulars	Closing Balance (Rs)	Opening Balance (Rs)
Machinery (at cost)	4,20,000	4,00,000
Accumulated depreciation	1,10,000	1,00,000
Patents	1,60,000	2,80,000

Additional Information:
1. During the year, a machine costing Rs 40,000 with its accumulated depreciation of Rs 24,000 was sold for Rs 20,000.
2. Patents written off were Rs 40,000 and some patents were sold at a profit of Rs 20,000.
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Option 1: Rs 24,000

Option 2: Rs 34,000

Option 3: Rs 44,000

Option 4: None of the above

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