Question

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.

Answer 1

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