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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


Team Careers360 14th Jan, 2024
Answer (1)
Team Careers360 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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