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Question
From the following extracts of a company, calculate Cash Flow from Investing Activities:
|
Particular |
31st March, 2019 (₹) |
31st March, 2018 (₹) |
| Goodwill |
75,000 |
1,00,000 |
| Patents | 1,00,000 | 75,000 |
| Land | 90,000 | 1,00,000 |
| Furniture | 2,46,000 | 21,000 |
| Plant and Machinery (Net) | 2,00,000 | 2,00,000 |
| 10% Investments | 1,80,000 | 2,00,000 |
| Accrued Interest on Investments |
6,000 |
... |
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Solution
|
Cash Flow from Investing Activities |
|||
|
|
Particulars |
Amount (₹) |
Amount (₹) |
|
|
Purchase of Patents |
(25,000) |
|
|
|
Purchase of Furniture |
(2,25,000) |
|
|
|
Interest received on Investment |
14,000 |
|
|
|
Sale of Investment |
20,000 |
|
|
|
Sale of Land |
10,000 |
|
|
|
Net Cash Used in Investing Activities |
|
(2,06,000) |
Note: It has been assumed that Investments have been sold at their Book Value at the end of the accounting period.
Working Notes:
Computation of Interest on Investments :
Interest on Investment `( 2,00,000 xx 10/100)` = 20,000
Less : Interest Accrued = (6,000)
Interest received on Investment = 14,000
