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Question : Sold machinery of original cost Rs. 2,00,000 with an accumulated depreciation of Rs. 1,60,000 for Rs. 60,000. Cash flow from investing activities is

Option 1: Rs 60,000

Option 2: Used in investing activities Rs 60,000

Option 3: Rs 20,000

Option 4: None of the above


Team Careers360 24th Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: Rs 60,000


Solution : Answer = Rs 60,000

Original cost 2,00,000
Accumulated depreciation (1,60,000)
Book value 40,000
- S.P. (60,000)
Profit 20,000

Cash flow from investing activities
Sale of machinery=Rs 60,000.
Hence, the correct option is 1.

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