X Ltd. sold machinery having a book value of Rs. 25,000 (on which accumulated depreciation of Rs. 5,000 had been charged) at a profit of Rs. 3,000. Th - Accountancy MCQ CUET Accountancy 2022 20 July Shift 1 2026 | ExamTest.live

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1 mark

X Ltd. sold machinery having a book value of Rs. 25,000 (on which accumulated depreciation of Rs. 5,000 had been charged) at a profit of Rs. 3,000. The cash flow from investing activities will be:

Solution & Step-by-step Explanation

Since "book value" is given as Rs. 25,000, this is the net value after deducting depreciation. Profit on sale is Rs. 3,000.Sale Proceeds = Book Value + Profit = 25, 000 + 3, 000 = Rs. 28, 000 .Inflow from investing activities = Rs. 28,000.

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X Ltd. sold machinery having a book value of Rs. 25,000 (on which accumulated depreciation of Rs. 5,000 had been charged) at a profit of Rs. 3,000. The cash flow from investing activities will be:

Rs. 30,000

Rs. 23,000

Rs. 25,000

Rs. 28,000

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