Question : Apple Ltd. has Machinery written down value of which On 1st April 2019 was Rs 6,60,000 and on 31st March 2020 was Rs 7,50,000. Depreciation for the year was Rs 40,000. At the beginning of the year, an item of machinery was sold for Rs 25,000 which had a written-down value of Rs 20,000
Question:
Cash flow from Investing Activities is ____________.
Option 1: Rs 1,50,000
Option 2: Rs 25,000
Option 3: Rs 1,25,000
Option 4: Rs 1,75,000
Correct Answer: Rs 1,25,000
Solution : Answer = Rs 1,25,000
Cash flow from investing activities | ||
Sale of machinery | 25,000 | |
Machinery purchased | (1,50,000) | |
Cash used in investing activities | (1,25,000) |
Hence, the correct option is 3.