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Question : Mention the net amount of 'Source' or 'Use' of cash when a fixed asset (having a book value of Rs. 25,000) is sold at a loss of Rs. 5,000.

Option 1: Sources Rs 20,000

Option 2: Sources Rs 25,000

Option 3: Used Rs 20,000

Option 4: None of the above


Team Careers360 14th Jan, 2024
Answer (1)
Team Careers360 20th Jan, 2024

Correct Answer: Sources Rs 20,000


Solution : Answer = Sources Rs 20,000
Sources Rs 20,000 because selling price (inflow of cash Rs 20,000 ) = book value loss 25,000-5000=20,000
Hence, the correct option is 1.

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