A plant whose original cost was Rs 40,000, accumulated depreciation provided till the date of sale was Rs 15,000 was sold at 20% above the book value. Cash flow will be
Options:
₹25000
₹30000
₹80000
₹18000
Correct Answer:
₹30000
Explanation:
Book Value = 40,000 - 15,000 = 25000 Sale value = 25,000 + 20% of 25,000 = Rs 30,000