Question

State with reason whether old furniture written off would lead to inflow, outflow or no flow of Cash and Cash Equivalents.

Answer 1

Old furniture written off would not result in any kind of inflow, outflow or cash and cash equivalents.

The journal entry passed in this case would be:

Depreciation A/c         Dr.    To Old Furniture A/c

This is mere entry to write off the old furniture in the books of accounts and does not denote any kind of inflow, an outflow of cash and cash equivalents.