# Calculation Cash Flow from Operating Activities and Investing Activities: - Accountancy

Numerical

From the following information, calculation Cash Flow from Operating Activities and Investing Activities:

 Particular 31st, March, 2018, (₹) 31st, March, 2019, (₹) Surplus, i.e., Balance in Statement of Profit and Loss 2,50,000 10,00,000 Provision for Tax 75,000 75,000 Trade Payables 1,00,000 3,75,000 Current Assets (Trade Receivables and Inventories) 11,50,000 13,00,000 Fixed Assets (Tangible) 21,25,000 23,30,000 Accumulated Depreciation 10,62,500 11,00,000

1. A machine having book value of ₹ 1,00,000 (Depreciation provided thereon ₹ 1,62,500) was sold at a loss of ₹ 20,000.
2. Tax paid during the year ₹ 75,000.

#### Solution

 Cash flow Statement for the year ended 31st March, 2019 Particulars Amount(₹) Amount(₹) A. Cash Flow from Operating Activities Net Profit as per Statement of Profit & Loss 7,50,000 Add: Provision for Tax made 75,000 Net Profit before Tax and Extraordinary Items 8,25,000 Add: Depreciation charged during the year 2,00,000 Add: Loss on Sale of Machine 20,000 Net Profit before working Capital changes 10,45,000 Add: Increase in Trade Payables 2,75,000 Less: Increase in Current Assets (1,50,000) Net Profit before Tax 11,70,000 Less: Tax Paid during the year 75,000 Cash Flow from Operating Activities 10,95,000 B. Cash flow from Investing Activities Purchase of Fixed Asset (4,67,500) Sale of Machine 80,000 Cash used in Investing Activities 3,87,500

 Dr. Accumulated Depreciation A/c Cr. Date Particulars Amount (₹) Date Particulars Amount (₹) 2019 2018 March 31 To Fixed Asset A/c(Depreciation on Mach. Sold) 1,62,500 April 01 By Balance b/d 10,62,500 March 31 To balance c/d 11,00,000 By Statement of Profit & Loss A/c(Bal. Fig.) 2,00,000 12,62,500 12,62,500

 Dr. Fixed Assets A/c Cr. Date Particulars Amount (₹) Date Particulars Amount (₹) 2018 2019 April 01 To balance b/d 21,25,000 March 31 By Accumulated Depreciation A/c 1,62,500 2019 March 31 By Statement of Profit & Loss A/c- Loss 20,000 March 31 By Bank A/c (1,00,000 – 20,000) 80,000 March 31 To Cash/Bank A/c 4,67,500 March 31 By balance c/d 23,30,000 25,92,500 25,92,500
Concept: Preparation of Cash Flow Statement
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#### APPEARS IN

TS Grewal Class 12 Accountancy - Analysis of Financial Statements
Chapter 4 Cash Flow Statement
Exercise | Q 36 | Page 101