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Question
From the following information, find out the inflow of cash:
31st March, 2015 | 31st March, 2014 | |
Plant and Machinery Account | ₹ 6,00,000 | ₹ 4,50,000 |
Accumulated Depreciation | ₹ 1,60,000 | ₹ 1,00,000 |
Additional Information:
Depreciation for the years 2014-2015 is ₹ 80,000
During the year Machinery was purchased for ₹ 2,50,000 and a part of the asset was sold at a profit of ₹ 40,000.
Options
₹ 1,20,000
₹ 1,00,000
₹ 80,000
₹ 40,000
MCQ
Solution
₹ 1,20,000
Explanation:
Dr. | Cr. | ||
Plant and Machinery Account | |||
Particulars | Amount (₹) |
Particulars | Amount (₹) |
To Balance b/d | 4,50,000 | By Bank A/c (Sale) (Bal. Fig.) |
1,20,000 |
To Bank A/c (Purchases) | 2,50,000 | By Accumulated Depreciation A/c | 20,000 |
To Statement of Profit and Loss (Profit on Sale) |
40,000 | By Balance c/d | 6,00,000 |
7,40,000 | 7,40,000 |
Dr. | Cr. | ||
Accumulated Depreciation account | |||
Particulars | Amount (₹) |
Particulars | Amount (₹) |
To Plant and Machinery A/c (Depreciation on Plant and Machine sold) (Profit on Sale) |
20,000 | By Balance b/d | 1,00,000 |
To Balance c/d | 1,60,000 | By Depreciation A/c (Statement of Profit and Loss) |
80,000 |
1,80,000 | 1,80,000 |
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Preparation of Cash Flow Statement
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