Question

Fixed assets appear in the balance sheet of a firm at ₹ 52,000. They realised at a loss of 4% on net collection. State the amount collected from such assets.

Answer 1

If net collection is ₹ 100 loss will be ₹ 4 and hence book value of assets must be ₹ 104.

As such, net amount realised from fixed assets will be:

= `100/104` of ₹ 52,000

= ₹ 50,000