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 = 200000
Less: Accumulate depreciation on this = 40000
Book value = (200000 -40000)
                 = ₹160000
Loss at which it is sold = 25000
Sale value = 160000 - 25000
                = ₹135000

Accumulated Depreciation Account