Question

From the following details. Calculate Cash Flow from Investing Activities

Particulars	31st March, 2019 (₹)	31st March, 2018 (₹)
Investment in 10% Debentures	10,00,000	5,00,000
Land and Building	15,00,000	9,00,000

Additional Information:
1. Half of the investment held in the beginning of the year were sold at 10% profit.
2. Depreciation on Land and Building was ₹ 50,000 for the year.
3. Interest received on investments ₹ 75,000.

Answer 1

Cash Flow from Investing Activities for the year ended March 31, 2019
	Particulars		Amount (₹)	Amount (₹)
		Purchase of Land and Building (WN1)	(6,50,000)
		Interest received on Investments	75,000
		Sale of Debentures (WN2)	2,75,000
		Purchase of Debentures(WN2)	(7,50,000)	(10,50,000)
	Net Cash Used in Investing Activities			(10,50,000)

Working Notes:

WN1:

Land and Building Account
Dr.					Cr.
Particulars		Amount (₹)	Particulars	Amount (₹)
Balance b/d		9,00,000	Depreciation A/c	50,000
Bank A/c (Purchase)		6,50,000	Balance c/d	15,00,000
		15,50,000		15,50,000

WN2:

Investment in Debentures Account
Dr.					Cr.
Particulars		Amount (₹)	Particulars	Amount (₹)
Balance b/d		5,00,000	Bank A/c (Sale)	2,75,000
Profit and Loss A/c (Profit on sale)		25,000	Balance c/d	10,00,000
Bank A/c (Purchase)		7,50,000
		12,75,000		12,75,000