{"id":57164,"date":"2024-04-16T00:57:17","date_gmt":"2024-04-16T00:57:17","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=57164"},"modified":"2024-04-16T00:57:17","modified_gmt":"2024-04-16T00:57:17","slug":"the-written-down-value-of-a-plant-is-rs-60000-the-original-value-being-rs-100000-it-is-sold-for-rs-120000-during-the-current-financial-year-which-of-the-following-is-true-in-this-regard","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/the-written-down-value-of-a-plant-is-rs-60000-the-original-value-being-rs-100000-it-is-sold-for-rs-120000-during-the-current-financial-year-which-of-the-following-is-true-in-this-regard\/","title":{"rendered":"The written down value of a plant is Rs. 60,000 (the original value being Rs. 1,00,000). It is sold for Rs. 1,20,000 during the current financial year. Which of the following is true in this regard?"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;Capital profit = Rs. 60,000&#8243; option2=&#8221;Revenue profit = Rs. 60,000&#8243; option3=&#8221;Capital profit = Rs. 20,000 and Revenue profit = Rs. 40,000&#8243; option4=&#8221;Capital profit = Rs. 1,20,000&#8243; correct=&#8221;option3&#8243;]<!--more--><\/p>\n<p>The correct answer is: C. Capital profit = Rs. 20,000 and Revenue profit = Rs. 40,000<\/p>\n<p>Capital profit is the difference between the sale price of an asset and its book value. In this case, the sale price is Rs. 1,20,000 and the book value is Rs. 60,000, so the capital profit is Rs. 60,000.<\/p>\n<p>Revenue profit is the difference between the revenue from the sale of an asset and its cost. In this case, the revenue is Rs. 1,20,000 and the cost is Rs. 1,00,000, so the revenue profit is Rs. 20,000.<\/p>\n<p>Therefore, the capital profit is Rs. 20,000 and the revenue profit is Rs. 40,000.<\/p>\n<p>Here is a brief explanation of each option:<\/p>\n<ul>\n<li>Option A: Capital profit = Rs. 60,000. This is incorrect because the capital profit is the difference between the sale price of an asset and its book value, not its original value.<\/li>\n<li>Option B: Revenue profit = Rs. 60,000. This is incorrect because the revenue profit is the difference between the revenue from the sale of an asset and its cost, not its original value.<\/li>\n<li>Option C: Capital profit = Rs. 20,000 and Revenue profit = Rs. 40,000. This is correct because the capital profit is the difference between the sale price of an asset and its book value, and the revenue profit is the difference between the revenue from the sale of an asset and its cost.<\/li>\n<li>Option D: Capital profit = Rs. 1,20,000. This is incorrect because the capital profit is the difference between the sale price of an asset and its book value, not its original value.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;Capital profit = Rs. 60,000&#8243; option2=&#8221;Revenue profit = Rs. 60,000&#8243; option3=&#8221;Capital profit = Rs. 20,000 and Revenue profit = Rs. 40,000&#8243; option4=&#8221;Capital profit = Rs. 1,20,000&#8243; correct=&#8221;option3&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-57164","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The written down value of a plant is Rs. 60,000 (the original value being Rs. 1,00,000). It is sold for Rs. 1,20,000 during the current financial year. Which of the following is true in this regard?<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/the-written-down-value-of-a-plant-is-rs-60000-the-original-value-being-rs-100000-it-is-sold-for-rs-120000-during-the-current-financial-year-which-of-the-following-is-true-in-this-regard\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The written down value of a plant is Rs. 60,000 (the original value being Rs. 1,00,000). It is sold for Rs. 1,20,000 during the current financial year. Which of the following is true in this regard?\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;Capital profit = Rs. 60,000&#8243; option2=&#8221;Revenue profit = Rs. 60,000&#8243; option3=&#8221;Capital profit = Rs. 20,000 and Revenue profit = Rs. 40,000&#8243; option4=&#8221;Capital profit = Rs. 1,20,000&#8243; correct=&#8221;option3&#8243;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/the-written-down-value-of-a-plant-is-rs-60000-the-original-value-being-rs-100000-it-is-sold-for-rs-120000-during-the-current-financial-year-which-of-the-following-is-true-in-this-regard\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-16T00:57:17+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"The written down value of a plant is Rs. 60,000 (the original value being Rs. 1,00,000). It is sold for Rs. 1,20,000 during the current financial year. Which of the following is true in this regard?","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/the-written-down-value-of-a-plant-is-rs-60000-the-original-value-being-rs-100000-it-is-sold-for-rs-120000-during-the-current-financial-year-which-of-the-following-is-true-in-this-regard\/","og_locale":"en_US","og_type":"article","og_title":"The written down value of a plant is Rs. 60,000 (the original value being Rs. 1,00,000). It is sold for Rs. 1,20,000 during the current financial year. 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