ABC Ltd has provided the following information:
On April 1, 2018
Machinery ₹500000
Accumulated Depreciation ₹250000
On March 31, 2019
Machinery ₹600000
Accumulated Depreciation ₹150000
During the year machine costing ₹250000 (depreciation charged ₹150000) was sold for ₹130000.
Calculate cash flow from investing activities on the basis of above information.

Cash used ₹220000

The correct answer is Option 1: Cash used ₹220000

Sale of Machinery 13,0000
Less: Purchase of Machinery (35,0000)
Net cash used in Investing Activities= 350000 -130000 = (22,0000)
As figure is given in bracket shown negative or outflow in accounting so correct ans will be (220000).

Machinery Account

Accumulated Depreciation Account