Question : Mention the net amount of 'source' or 'use' of cash when a fixed asset having book value of Rs.15,000 is sold at a loss of Rs.5,000 -
Option 1: Use Rs.5,000
Option 2: Source Rs.10,000
Option 3: Use 10,000
Option 4: Source Rs.5,000
Answer (1)
25th Jan, 2024
Correct Answer: Source Rs.10,000
Solution : The amount of Source will be Rs.10000
Fixed asset value = 15000
Loss on sale of assets = 5000
Hence Net Inflow (Source) of funds is Rs.10000 (15000-5000)
Hence the Correct answer is option 2.
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