Question

From the following information, calculate the inflow of cash by sale of machinery:

Particulars	31st March, 2026 (₹)	31st March, 2025 (₹)
Machinery	10,000,000	15,000,000

Additional Information:

1. Depreciation charged on Machinery was ₹ 2,00,000.
2. Machinery purchased during the year ₹ 1,50,000.
3. Part of Machinery sold at a profit of ₹ 60,000.

विकल्प

• ₹ 5,00,000

• ₹ 5,10,000

• ₹ 4,50,000

• ₹ 5,20,000

Answer 1

₹ 5,10,000

Explanation:

The cash inflow from the sale of machinery, we construct a Machinery Account to solve for the missing sale value:

\[\text{Debit Total} = \text{Opening Balance (2025)} + \text{Purchases} + \text{Profit on Sale}\]

$$\text{Debit Total} = ₹15,00,000 + ₹1,50,000 + ₹60,000 = {₹17,10,000}$$

$$\text{Inflow from Sale} = \text{Debit Total} - (\text{Depreciation} + \text{Closing Balance (2026)})$$

$$\text{Inflow from Sale} = ₹17,10,000 - (₹2,00,000 + ₹10,00,000) = {₹5,10,000}$$