Select the amount of net Cash Flow from Investing activities on the basis of following information, for the year ending on March 31st, 2023.
Machinery as on April 1st, 2022 ₹ 50,000
Machinery as on March 31st, 2023 ₹ 60,000
During the year, machine costing ₹25,000 with accumulated depreciation of ₹ 15,000 was sold for ₹10,000.
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → ₹ 25,000 outflow
Machinery is shown at cost, since accumulated depreciation is given separately.
Machinery purchased = closing ₹60,000 + cost of machine sold ₹25,000 − opening ₹50,000 = ₹35,000 (outflow)
Sale of machinery = ₹10,000 (inflow)
Net cash used in investing activities = ₹35,000 − ₹10,000 = ₹25,000 outflow
NCERT (2026-27 edition):
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