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Calculate Cash Flow from Investing Activities - Accountancy

Numerical

From the following particulars, calculate Cash Flow from Investing Activities

Particulars

Purchased (₹) Sold (₹)
Machinery 6,20,000 2,00,000
Investments 2,40,000 80,000
Goodwill 1,00,000 ...
Patents ... 1,50,000

Additional Information:
1. Interest received on debentures held as investment ₹ 8,000.
2. Interest paid on debentures issued ₹ 20,000.
3. Dividend received on shares held as investment ₹ 20,000.
4. Dividend paid on Equity Share Capital ₹ 30,000.
5. A plot of land was purchased out of the surplus funds for investment purposes and was let out for commercial use. Rent received ₹ 50,000 during the year.

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Solution

Cash Flow from Investing Activities

 

Particulars

Amount

(Rs)

Amount

(Rs)

 

Purchase of Machinery

(6,20,000)

 

 

Purchase of Investments

(2,40,000)

 

 

Purchase of Goodwill

(1,00,000)

 

 

Sale of Machinery

2,00,000

 

 

Rent Received

50,000

 

 

Dividend Received

20,000

 

 

Sale of Investments

80,000

 

 

Interest on Debentures

8,000

 

 

Sale of Patents

1,50,000

 

 

Net Cash Used in  Investing Activities

 

(4,52,000)

Note: Dividend paid and interest paid is a part of Financing Activities.

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 31 | Page 100
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