Marketable Securities costing Rs. 10,000 sold for Rs. 12,000, Profit on the sale of Marketable Securities was credited to the Statement of Profit and Loss. Which of the following statement is correct?
1
Rs. 2,000 will be deducted from Net Profit under Operating Activity and shown as inflow under Investing Activities.
2
Rs. 2,000 will be deducted from Net Profit under Operating Activity and shown as Extra-ordinary Item under Operating Activities
3
Rs. 2,000 will be deducted from Net Profit under Operating Activity and shown as Extra-ordinary Item under Investing Activities.
4
Rs. 2,000 will be deducted from Net Profit under Operating Activity and added to Cash and Cash Equivalents.