alleryOn sale of asset for ₹2,00,000 with WDV ₹2,30,000, the loss on sale is:
A₹30,000 revenue loss
B₹30,000 capital loss
C₹2,30,000 total loss
D₹0 (no loss arises)
Answer & Solution
Correct answer: A. ₹30,000 revenue loss
1. Loss = Carrying amount − Sale proceeds.
2. = 2,30,000 − 2,00,000 = ₹30,000.
3. Loss on sale of fixed asset is debited to P&L as a revenue loss.
_Source: ICAI BoS Foundation Paper 1, Ch 5 "Depreciation & Amortisation", §4 disposal_
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