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  • Category: I need help

    Doubt for particular question

    Ashwin purchased a second hand machine for 1 lakhs. Over the first year after its purchase, he incurred an expense of Rs. 20000/- in maintaining it. At the end of the first year he sold it for Rs. 80000/-. Find his profit/loss percentage, if 25% of the total cost price (i.e. purchased price + expenses) is to be deducted on account of depreciation. ?

    1. 100/9%

    2. 12.5%


    3. 26.6%
    4. 25%

    can anyone provide explanation for the above question ?
  • #1956
    The correct Option is option 1 that is 100/9%

    Total cost incurred is 1,00,000 + 20,000 = 1,20,000

    Price after 25% depreciation is 1,20,000 - 30,000 = 90,000

    Profit = Cost price - Sell price = 90,000 - 80,000 = 10,000

    Percentage of profit is = (10,000 X 100) / 90,000 = 100/9 %

    Regards,
    Namita Terse

  • #1958
    Thank you for the explanation .


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