Question : Mention the net amount of 'Source' or 'Use' of cash when a fixed asset (having a book value of Rs. 25,000) is sold at a loss of Rs. 5,000.
Option 1: Sources Rs 20,000
Option 2: Sources Rs 25,000
Option 3: Used Rs 20,000
Option 4: None of the above
Answer (1)
22nd Jan, 2024
Correct Answer: Sources Rs 20,000
Solution :
Answer =
Sources Rs 20,000
Sources Rs 20,000 because selling price (inflow of cash Rs 20,000 ) = book value loss 25,000-5000=20,000
Hence, the correct option is 1.
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