alleryStart learning →PPE of Rs 60,000 is sold for Rs 72,000. How is the Rs 12,000 treated?
AOperating revenue
BGain in profit or loss
CSurplus credit in equity
DCut in other assets
Answer & Solution
Correct answer: B. Gain in profit or loss
Sale proceeds exceed carrying amount by 12,000, which is a gain in profit or loss and not revenue.
Keep practising Ind AS 2 Inventories and Ind AS 16 Property, Plant and Equipment
Browse all Ind AS 2 Inventories and Ind AS 16 Property, Plant and Equipment questions for CA Final, or explore more Financialreporting topics.
Related questions
How do fixed assets differ from inventory in holding purpose?Why can depreciation on historical cost alone lead to excessive dividends when prices riseIn the appraisal method, who determines fair market value?In indexation, what is applied to the cost of assets?Why might fixed assets be revalued?Which terms apply to natural resources and intangibles respectively?Which event may indicate that an asset is impaired?How is depreciation treated in the cash flow statement?