From the following information, determine amount of machinery purchased, to be shown as outflow in Investing Activities.

Additional Information:

During the year 2022-23, a part of Machinery Costing ₹2,00,000 (Book value 1,60,000) was sold at a loss of ₹25,000.

₹4,50,000

The correct answer is Option 1 - ₹4,50,000.

Machinery Account

Machinery cost which is sold = 2,00,000
Less: Accumulate depreciation on this = 40,000
Book value = (2,00,000 - 40,000)
                 = ₹1,60,000
Loss at which it is sold = 25,000
Sale value = 1,60,000 - 25,000
                = ₹1,35,000

Accumulated Depreciation Account