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
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.




