Question

At the time of dissolution Machinery appears at ₹ 10,00,000 and accumulated depreciation for the machinery appears at ₹ 6,00,000 in the balance sheet of a firm. This machine is taken over by a creditor of ₹ 5,40,000 at 5% below the net value. The balance amount of the creditor was paid through bank. By what amount should the bank account be credited for this transaction?

Options

• ₹ 60,000

• ₹ 1,60,000

• ₹ 5,40,000

• ₹ 4,00,000

Answer 1

₹ 1,60,000