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ABC Ltd has provided the following information: On April 1, 2018: Machinery: ₹5,00,000 Accumulated Depreciation: ₹2,50,000 On March 31, 2019:
Question

ABC Ltd has provided the following information:
On April 1, 2018:
Machinery: ₹5,00,000
Accumulated Depreciation: ₹2,50,000
On March 31, 2019:
Machinery: ₹6,00,000
Accumulated Depreciation: ₹1,50,000
During the year Machine costing ₹2,50,000 (Depreciation charged ₹1,50,000) was sold for ₹1,30,000. Calculate cash flow from investing activities on the basis of the above information.

A.

Cash used ₹2,20,000

B.

Cash inflow ₹2,20,000

C.

Cash used ₹3,50,000

D.

Cash inflow ₹3,50,000

Correct option is A

Working Note:

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