1. A purchased 3 plants from B costing Rs 4,00,000 each
  2. The purchaser charged depreciation @ 20% on Diminishing Balance Method.
  3. 2 plants were seized by the vendor B when the second installment was not paid at the end of second year and vendor valued the plants at cost less 30% depreciation annually charged at Diminishing Balance Method.
  4. The vendor spent Rs 1,60,000 on overhauling the plants and sold for Rs 6,40,000.


  1. Value of plant taken by the vendor
  2. Value of plant left with the purchaser
  3. Profit or loss on plant taken back
  4. Profit or loss on plant repossessed when sold by vendor