06 January 2009
If in balance sheet op. balance of machinery is 80,000 & cl. is 55,000 & During year a machine costing Rs. 10,000 with accumulated Rs. 3,000 was sold Rs. 5,000 then what is effect to b taken in cash flow statement? With reason answers plz?
07 January 2009
OP balance-80000 cl balance-55000 cost of mach sold-10000 acc dep on above-3000 sale price-5000 so current year depreciation is 80000-10000+3000-55000=18000
In Cash Flow Statement, the following shall be reported: Under operating Activities: Adj for Dep-18000 Loss on sale of machinery-2000 Under Investing Activities sale of machinery-5000 shall be considered
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