- A purchased 3 plants from B costing Rs 4,00,000 each
- The purchaser charged depreciation @ 20% on Diminishing Balance Method.
- 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.
- The vendor spent Rs 1,60,000 on overhauling the plants and sold for Rs 6,40,000.
Calculate:
- Value of plant taken by the vendor
- Value of plant left with the purchaser
- Profit or loss on plant taken back
- Profit or loss on plant repossessed when sold by vendor