How does sales of an asset affect cash and other entries in the balance sheet?



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if company has sold an asset at a profit of 15 cr then the possible entries wd be profit on the sale of assets on balance sheet , a cash inflow in CFI Section & on balance sheet cash & shareholders equity rises by the 15 cr amt ...is my reasoning correct for the particular transaction?

1 Answer(s)


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Rohit,
Your reasoning is mostly correct, except for the part in which Cash amount increases - Cash will increase by the total sale value not just Rs.15 crore profit.