The correct answer is Option 1- Cash used ₹2,20,000
Sale of Machinery 1,30,000
Less: Purchase of Machinery (3,50,000)
Net cash used in Investing Activities = 3,50,000 -1,30,000
= 22,0000
As figure is outflow in accounting so correct ans will be cash used 2,20,000.
Machinery Account
|
Particulars
|
J.F.
|
Amount(₹)
|
Particulars
|
J.F.
|
Amount(₹)
|
|
Balance b/d
|
|
5,00,000
|
Cash (proceeds from sale of machine)
|
|
1,30,000
|
|
Statement of Profit and Loss
(profit on sale of machinery)
|
30,000
|
Accumulated Depreciation
|
1,50,000
|
|
Cash (balancing figure:
new machinery purchased)
|
3,50,000
|
Balance c/d
|
6,00,000
|
|
|
8,80,000
|
|
8,80,000
|
Accumulated Depreciation Account
|
Particulars
|
J.F.
|
Amount (₹)
|
Particulars
|
J.F.
|
Amount (₹)
|
|
Machinery
|
|
1,50,000
|
Balance b/d
|
|
2,50,000
|
|
Balance c/d
|
1,50,000
|
Statement of Profit and Loss
(Depreciation provided during the year)
|
50,000
|
|
|
3,00,000
|
|
3,00,000
|
|
