Question

From the following information ,caluclate Cash Flow from Investing and Financing Activities:

During the year, a machine costing ₹ 10,000 was sold at a loss ₹2,000. Depreciation on machinery charged during the year amount to ₹ 6,000.

Answer 1

Correct Answer - Invesitng Activites : Puraches of Machine = ₹ 20,000; Sale of Machine = ₹ 4,000; Cash Used in Investing Activites = ₹ 16,000;
Financing Activities Additional Capital = ₹ 5,000; Repayment of Bank Loan = ₹ 10,000; Cash Used in Financing Activities = ₹ 5,000