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    Question

    Plant purchased for ₹6,00,000. Depreciation for year =

    ₹1,00,000. Closing balance of Plant = ₹10,00,000. Opening balance was ₹5,00,000. Calculate Cash outflow for plant purchase.
    A ₹6,00,000 Correct Answer Incorrect Answer
    B ₹7,00,000 Correct Answer Incorrect Answer
    C ₹8,00,000 Correct Answer Incorrect Answer
    D ₹10,00,000 Correct Answer Incorrect Answer
    E ₹9,00,000 Correct Answer Incorrect Answer

    Solution

    Closing = Opening + Purchases – Depreciation = 5,00,000 + Purchases – 1,00,000 = 10,00,000 → Purchases = 6,00,000.

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