Nitin Ltd. provides you the following information.Particulars1 April 202131 March 2022Machinery Accumulated Depreciation During the year, a machine costing Rs. with accumulated depreciation of Rs. was sold for Rs. .Calculate Cash Flow from Investing Activities on the basis of the above information.
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Solution & Step-by-step Explanation
Prepare the Machinery Account (At Cost):Opening Balance = Closing Balance = Machine sold (Cost) = (Credited to Machinery A/c)Dr: Op. Bal () + Purchases () = Cr: Sale Cost () + Cl. Bal () (Purchases) = Rs. .Cash Outflow from Purchase = Rs. .Cash Inflow from Sale = Rs. .Net Cash Flow from Investing Activities = Inflow - Outflow = (Net Outflow of Rs. ).