Finding the figure of property, plant and equipment purchased: The balance sheet of Axon Limited for the year 2017 and 2016 showed the following amounts under the heading property, plant and equipment:
During the year, the company sold an item of PPE with original cost of ₹ 87 million and accumulated depreciation of ₹ 69.45 million for ₹ 21.50 million.
1. Based upon the above information, ascertain the depreciation charged for the current year and also profit or loss on sale of PPE.
2. Ascertain the cost of PPE purchased during the year.
3. How will the depreciation and profit/loss on sale of PPE be treated while calculating cash flow from operating activities (using indirect method)?
4. How will you show the above transactions under cash flow from investing activities?
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