# Calculate Cash Flow from Investing Activities: - Accountancy

Numerical

From the following information, calculate Cash Flow from Investing Activities:

 Particulars 31st March,2019 (₹) 31st March,2018 (₹) Machinery (At cost) 5,50,000 5,00,000 Accumulated Depreciation 1,70,000 1,00,000

During the year, a machinery costing ₹ 50,000 (accumulated depreciation provided thereon ₹ 20,000) was sold for ₹ 26,000.

#### Solution

 Cash Flow from Investing Activities Particulars Amount (₹) Amount (₹) Purchase of Machinery (1,00,000) Sale of Machinery 26,000 Net Cash Used in Investing Activities (74,000)

Working Notes:

 Machinery Account Dr. Cr. Particulars Amount (₹) Particulars Amount (₹) To Balance b/d 5,00,000 Accumulated Depreciation A/c 20,000 To Bank A/c (Purchase- Bal. Fig.) 1,00,000 Bank A/c (Sale) 26,000 Profit and Loss A/c (Loss on Sale) 4,000 Balance c/d 5,50,000 6,00,000 6,00,000

 Accumulated Depreciation Account Dr. Cr. Particulars Amount (₹) Particulars Amount (₹) To Machinery A/c 20,000 Balance b/d 1,00,000 Balance c/d 1,70,000 Profit and Loss A/c (Dep. charged during the year- Bal. Fig.) 90,000 1,90,000 1,90,000
Concept: Ascertainment of Cash Flow from Investing and Financing Activities
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#### APPEARS IN

TS Grewal Class 12 Accountancy - Analysis of Financial Statements
Chapter 4 Cash Flow Statement
Exercise | Q 30 | Page 100