Calculate the amount of cash from sale of machinery from the following items:A machine costing Rs. 20,000 having book value of Rs. 15,000 is sold for - Accountancy MCQ CUET Accountancy 2023 11 June Shift 3 2026 | ExamTest.live

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1 mark

Calculate the amount of cash from sale of machinery from the following items:A machine costing Rs. 20, 000 having book value of Rs. 15, 000 is sold for Rs. 12, 000 and depreciation charged during the year was Rs. 8, 000 . The opening and closing balance in machinery account was Rs. 1, 80, 000 an d R s . 1,72,000$ respectively.

Solution & Step-by-step Explanation

The question explicitly states that the machine was sold for Rs. 12,000. Therefore, the actual cash inflow generated from the sale transaction of the machinery under investing activities is exactly Rs. 12, 000 .

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Calculate the amount of cash from sale of machinery from the following items:A machine costing Rs. 20, 000 having book value of Rs. 15, 000 is sold for Rs. 12, 000 and depreciation charged during the year was Rs. 8, 000 . The opening and closing balance in machinery account was Rs. 1, 80, 000 an d R s . 1,72,000$ respectively.

Rs. 12, 000

Rs. 20, 000

Rs. 18, 000

Rs. 8, 000

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