Question

From the following particulars, calculate Cash Flow from Investing Activities

Particulars	Purchased (₹)	Sold (₹)
Machinery	6,20,000	2,00,000
Investments	2,40,000	80,000
Goodwill	1,00,000	...
Patents	...	1,50,000

Additional Information:
1. Interest received on debentures held as investment ₹ 8,000.
2. Interest paid on debentures issued ₹ 20,000.
3. Dividend received on shares held as investment ₹ 20,000.
4. Dividend paid on Equity Share Capital ₹ 30,000.
5. A plot of land was purchased out of the surplus funds for investment purposes and was let out for commercial use. Rent received ₹ 50,000 during the year.

Answer 1

Cash Flow from Investing Activities
	Particulars	Amount (Rs)	Amount (Rs)
	Purchase of Machinery	(6,20,000)
	Purchase of Investments	(2,40,000)
	Purchase of Goodwill	(1,00,000)
	Sale of Machinery	2,00,000
	Rent Received	50,000
	Dividend Received	20,000
	Sale of Investments	80,000
	Interest on Debentures	8,000
	Sale of Patents	1,50,000
	Net Cash Used in  Investing Activities		(4,52,000)

Note: Dividend paid and interest paid is a part of Financing Activities.