Question

From the following information, calculate the Cash from Investing Activities.

Particulars	31 March 2023	31 March 2024
Machinery (Cost)	20,00,000	28,00,000
Accumulated Depreciation	4,00,000	6,50,000

Additional Information:

1. Machinery costing ₹ 50,000 (Book Value ₹ 40,000) was lost by fire and insurance claim of ₹ 32,000 was received.
2. Depreciation charged during the year was ₹ 3,50,000.
3. A part of Machinery costing ₹ 2,50,000 was sold at a loss of ₹ 20,000.

Answer 1

Dr.	Accumulated Depreciation A/c		Cr.
Particulars	Amount	Particulars	Amount
To Machinery A/c (prev. dep on machine damaged)	10,000	By Balance b/d	4,00,000
To Machinery A/c (prev. dep on machine sold)	90,000	By Depreciation A/c (Charged during the year)	3,50,000
To Balance c/d	6,50,000
	7,50,000		7,50,000

 

Dr.	Machinery A/c		Cr.
Particulars	Amount	Particulars	Amount
To Balance b/d	20,00,000	By Accumulated Depreciation A/c	10,000
To Bank A/c (Balancing figure)	11,00,000	By Insurance Company A/c	32,000
		By loss by fire A/c	8,000
		By Bank A/c	1,40,000
		By Loss on Sale A/c	20,000
		BY Accumulated Depreciation A/c	90,000
		By Balance c/d	28,00,000
	31,00,000		31,00,000

 

Investing Activities:
Sale of Machinery	1,40,000
Claim received from Insurance Company	32,000
Machinery Purchased	(11,00,000)
Cash Outflow from Investing Activities	(9,28,000)