Calculate the amount of cash from sale of machinery from the following items :

A machine costing ₹20,000 having book value of ₹15,000 is sold for ₹12,000 and depreciation charged during the year was ₹8,000. The opening and closing balance in machinery account was ₹1,80,000 and ₹1,72,000 respectively.

₹12,000

The correct answer is option (1)- ₹12,000.

Cost of machinery = ₹20,000
Book value of machinery = 15,000
Depreciation = 20,000 - 15,000
                   = ₹5,000

₹12,000 is sale value.
Loss = 15,000 - 12,000
       = ₹3,000

Sale value is the cash received from sale so answer is 12,000.