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प्रश्न
The balance in Plant & Machinery account and Accumulated depreciation account as on March 31, 2021, and 2022 stood as follows:
| 31st March, 2021 (₹) |
31st March, 2022 (₹) |
|
| Plant & Machinery | 45,20,000 | 62,50,000 |
| Accumulated Depreciation | 12,60,000 | 14,10,000 |
Plant & Machinery costing ₹ 8,00,000 was sold at a loss of ₹ 1,04,000. Depreciation provided during the year was ₹ 4,30,000.
You are required to calculate Cash from Investing Activities.
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उत्तर
| Cash Flow from Investing Activities | |
| Particulars | Amount (₹) |
| Sale of Plant & Machinery | 4,16,000 |
| Purchase of Plant & Machinery | (25,30,000) |
| Net Cash Used in Investing Activities | (21,14,000) |
Working Note 1: Calculation of Sale Proceeds of Plant & Machinery.
Given:
- Cost of Plant sold = ₹ 8,00,000
- Loss on sale = ₹ 1,04,000
- Book Value of asset sold = Cost – Accumulated Depreciation on sold asset
- Let depreciation on sold asset = x
Then, Book Value = ₹ 8,00,000 − x
Loss on Sale = ₹ (8,00,000 − x) − Sale Proceeds
₹ 1,04,000 = ₹ (8,00,000 − x) − Sale Proceeds
Sale Proceeds = ₹ (8,00,000 − x − 1,04,000)
We also know:
Total Depreciation charged during the year = ₹ 4,30,000
Increase in Accumulated Depreciation = ₹ 14,10,000 − ₹ 12,60,000
= ₹ 1,50,000
Therefore,
Depreciation on Sold Asset = ₹ 4,30,000 − ₹ 1,50,000
= ₹ 2,80,000
Hence,
Book Value = ₹ 8,00,000 − ₹ 2,80,000
= ₹ 5,20,000
∴ Sale Proceeds = ₹ 5,20,000 − ₹ 1,04,000
∴ Sale Proceeds = ₹ 4,16,000
Working Note 2: Calculation of Purchase of Plant & Machinery.
Closing Balance = Opening Balance + Purchases − Cost of Assets Sold
₹ 62,50,000 = ₹ 45,20,000 + Purchases − ₹ 8,00,000
∴ Purchases = ₹ 45,20,000 + ₹ 62,50,000 − ₹ 8,00,000
∴ Purchases = ₹ 25,30,000
