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?

A. 20,000 Loss
B. 20,000 Profit
C. 10,000 Loss
D. 10,000 Profit

The correct answer to the question: "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?" is "20,000 Loss".

4 Comments

samoon durrani on 20/03/2019 2:32 PM
purchase = 200,000 40,000 * 10%
sold = 160,000
total years = 5
bv = 160,000
sell = 140,000
loss = 20,000
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