# Calculate Cash Flow from Investing Activities on the Basis of the Above Information. - Accountancy

Numerical
 Welprint Ltd. has given the following information: ₹ Machinery as on 1st April, 2018 50,000 Machinery as on 31st March, 2019 60,000 Accumulated Depreciation on 1st April, 2018 25,000 Accumulated Depreciation on 31st march, 2019 15,000

During the year, a machine costing ₹ 25,000 (accumulated depreciation thereon ₹ 15,000) was sold for ₹ 13,000. Calculate Cash Flow from Investing Activities on the basis of the above information.

#### Solution

 Cash Flow Statement Particulars Amount (₹) Amount (₹) Cash Flow from Investing Activities Purchase of Machinery (35,000) Sale of Machinery 13,000 (22,000) Cash Used in Investing Activity (22,000)

Working Notes:

 Machinery Account Dr. Cr. Particulars Amount (₹) Particulars Amount (₹) Balance b/d 50,000 Bank A/c 13,000 Profit and Loss A/c 3,000 Accumulated Depreciation A/c 15,000 Bank A/c (Bal. Fig.) 35,000 Balance c/d 60,000 88,000 88,000

 Accumulated Depreciation Account Dr. Cr. Particulars Amount (₹) Particulars Amount (₹) Machinery A/c 15,000 Balance b/d 25,000 Balance c/d 15,000 Profit and Loss A/c(Bal. Fig.) 5,000 30,000 30,000
Concept: Preparation of Cash Flow Statement
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#### APPEARS IN

TS Grewal Class 12 Accountancy - Analysis of Financial Statements
Chapter 4 Cash Flow Statement
Exercise | Q 23 | Page 97