Question

From the following extracts of a company, calculate Cash Flow from Investing Activities:

Particular	31st March, 2026 (₹)	31st March, 2025 (₹)
Goodwill	75,000	1,00,000
Patents	1,00,000	75,000
Land	90,000	1,00,000
Furniture	2,46,000	21,000
Plant and Machinery (Net)	2,00,000	2,00,000
10% Investments	1,80,000	2,00,000
Accrued Interest on Investments	6,000	...

Additional Information: Investment is sold at book value on 31st March, 2026.

Hints:

1. Since investment is sold at book value, there is neither gain (profit) nor loss.
2. Interest received on Investments = 10% of ₹ 2,00,000 − ₹ 6,000 = ₹ 14,000.

Answer 1

Cash Flow from Investing Activities
Particulars	Amount (₹)	Amount (₹)
Purchase of Patents	(25,000)
Purchase of Furniture	(2,25,000)
Interest received on Investment	14,000
Sale of Investment	20,000
Sale of Land	10,000
Net Cash Used in Investing Activities		(2,06,000)

Note: It has been assumed that Investments have been sold at their Book Value at the end of the accounting period.

Working Notes:
Computation of Interest on Investments:
Interest on Investment `( 2,00,000 xx 10/100)` = 20,000

Less: Interest Accrued  = (6,000)
Interest received on Investment = 14,000