Financial Statements of a Company · Class 12 · CBSE · Commerce Accountancy
Under which head in the Statement of Profit and Loss of a company is 'Loss on Sale of Machinery' recorded?
Practice question from Financial Statements of a Company (Class 12 · CBSE · Commerce Accountancy), with the correct answer and a step-by-step solution.
hard · MCQ · Q-838B4D
Under which head in the Statement of Profit and Loss of a company is 'Loss on Sale of Machinery' recorded?
- A.Cost of Materials Consumed
- B.Other ExpensesCorrect answer
- C.Depreciation and Amortisation Expense
- D.Finance Costs
Solution
Loss on sale of fixed assets like machinery does not form part of normal operating costs, depreciation, or finance costs; hence, it is disclosed under 'Other Expenses' in the Statement of Profit and Loss.
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