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KRISHNA Ltd. has given you the following information:

ParticularsRs.
Machinery as on April 01, 20241,50,000
Machinery as on March 31, 20251,60,000
Accumulated Depreciation on April 01, 20241,25,000
Accumulated Depreciation on March 31, 20251,15,000

During the year, a machine costing Rs. 75,000 with Accumulated Depreciation of Rs. 15,000 was sold for Rs. 50,000.

Calculate cash flow from Investing Activities on the basis of the above information

Solution

✅ Correct Option: 3

Machinery purchased =1,60,000−1,50,000+75,000=85,000= 1,60,000 - 1,50,000 + 75,000 = 85,000 (outflow). Sale proceeds =50,000= 50,000 (inflow). Net cash used in investing activities =85,000−50,000=35,000= 85,000 - 50,000 = 35,000.

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