Q:
Shivam Industries installed a flour mill for Rs. 300,000 five years ago. If the fixed annual rate of depreciation is 5% and they sold the mill for Rs. 250,000 their gain/loss % is?
Answer & Explanation
Answer: D) Gain 10%
Explanation: Given that mill worth originally =3ooooo
Depreciation for 1 yr =300000x5/100= Rs. 15000
Then, depreciation for 5yrs = Rs. 75000
Value after 5yrs = 300000 - 75000 = Rs. 225000
Given Selling Price of the mill = Rs. 250000
Sp > CP
Gain = 250000 - 225000 = Rs. 25000
Gain% = 25000/250000 x 100 = 10%.
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