Question

Mars Ltd. has Plant and Machinery whose written down value on 1st April, 2017 was ₹9,60,000 and on 31st March, 2018 was ₹10,50,000. Depreciation for the year was ₹35,000. In the beginning of the year, a part of plant was sold for ₹45,000 which had a written down value of ₹30,000.
Calculate Cash Flow from Investing Activities

Answer 1

Cash Flow from Investing Activities for the year ended March 31, 2017
	Particulars		Amount (Rs)	Amount (Rs)
		Purchase of Plant and Machinery	(1,55,000)
		Sale of Plant and Machinery	45,000
	Net Cash Used in Investing Activities			(1,10,000)

Working Notes:

Plant and Machinery Account
Dr.					Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Balance b/d		9,60,000	Depreciation	35,000
Profit and Loss A/c (Profit on Sale)		15,000	Bank A/c (Sale)	45,000
Bank A/c (Purchase)		1,55,000	Balance c/d	10,50,000
		11,30,000		11,30,000