A second hand car is purchased for 2,00,000 and sold at 1,40,000 after two years. If depreciation is charged @ 10% on SLM method, find the profit or loss on sale of the car?

Academy of PakistanTest & Learning

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Academy of PakistanTest & Learning

804Active Users

100AccountingMedium

A10,000 Loss

B10,000 Profit

C20,000 Profit

D20,000 Loss

Correct answer

D. 20,000 Loss

Explanation

20,000 Loss is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.

A second hand car is purchased for 2,00,000 and sold at 1,40,000 after two years. If depreciation is charged @ 10% on SLM method, find the profit or loss on sale of the car? - Answer and Explanation | Academy of Pakistan