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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.

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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
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