From the following information calculate the amount for sale of building to be shown in the Receipt & payment A/c:
1. Building as on 1st April 2020 = ₹6,00,000
2. Building as on 31 march 2021 = ₹3,50,000
3. Depreciation for a year = ₹60,000
4. Loss on sale of Building = ₹30,000
Answer & explanation
Correct answer: option 3
The correct answer is option 3- ₹1,60,000.
Opening Balance = 6,00,000
Less : Dep - 60,000
Less : Loss - 30,000
Less: Closing balance - 3,50,000
Sale during the year = 1,60,000
BUILDING A/C
| Particulars | Amount (₹) | Particulars | Amount (₹) |
| To bal b/d | 6,00,000 | By depreciation | 60,000 |
| By loss on sale | 30,000 | ||
| By bank A/c (Sale of building) (Bal fig.) |
1,60,000 | ||
| By bal c/d | 3,50,000 | ||
| 6,00,000 | 6,00,000 |