In the books of D. Ltd. the machinery account shows a debit balance of Rs.60, 00

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In the books of D. Ltd. the machinery account shows a debit balance of Rs.60, 000 as on April 1st, 2003. The machinery was sold on September 30, 2004 for Rs.30, 000. The company charges depreciation @ 20% p.a. (FY April to March) on diminishing balance method. What will be the Profit or Loss on sale of machinery?

Options:

A . Rs.13, 200 Profit.

B . Rs.13, 200 Losses.

C . Rs.6, 800 Profit.

D . Rs.6, 800 Losses.

Answer: Option B

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