The balance of property at cost has been ₹20,000 and ₹ 17,000 in 2015 and 2016, respectively. The profit on the sale of property of ₹ 2,000 is credited to Capital Reserve Account. New property costing ₹ 5,000 was bought in 2016. Determine the sale proceeds from property.

Correct option is C

Given:
· Opening Balance of Property at Cost (2013) = 20,000
· Closing Balance of Property at Cost (2014) = 17,000
· Profit on Sale credited to Capital Reserve = 2,000
· Cost of New Property Purchased (2014) = 5,000
Calculation:
"Sale Proceeds"="Opening Balance"+"Purchases"-"Closing Balance" "Sale Proceeds"=20,000+5,000-17,000=8,000
Alternatively, to find the Book Value of Property Sold:
"Book Value of Sold Property"="Opening Balance"+"Purchases"-"Closing Balance" "Book Value of Sold Property"=20,000+5,000-17,000=8,000
To find the Sale Value (including Profit):
"Sale Value"="Book Value of Sold Property"+"Profit on Sale" "Sale Value"=8,000+2,000=10,000
Combined Formula for Sale Value:
(20,000+5,000+2,000-17,000=10,000)