# From the Following Information, Calculate Cash Flow from Investing Activities - Accountancy

Numerical

From the following information, calculate Cash Flow from Investing Activities

 Particular 31st March,2019 (₹) 31st March,2018 (₹) Plant and Machinery 10,00,000 8,50,000 Investment (Long-term) 1,00,000 40,000 Land (At Cost) 1,00,000 2,00,000

1. Depreciation charged on Plant and Machinery ₹ 50,000.
2. Plant and Machinery with a Book Value of ₹ 60,000 was sold for ₹ 40,000.
3. Land was sold at a profit of ₹ 60,000.
4. No investment was sold during the year.

#### Solution

 Cash Flow from Investing Activities Particulars Amount (₹) Amount (₹) Purchase of Plant and Machinery (WN1) (2,60,000) Purchase of Investments (60,000) Sale of Plant and Machinery (WN1) 40,000 Sale of Land (WN2) 1,60,000 Net Cash Used in Investing Activities (1,20,000)

Working Notes:

WN1

 Plant and Machinery Account Dr. Cr. Particulars Amount (₹) Particulars Amount (₹) Balance b/d 8,50,000 Depreciation A/c 50,000 Bank A/c (Purchases- Bal. Fig.) 2,60,000 Bank A/c (Sale) 40,000 Profit and Loss A/c (Loss on Sale) 20,000 Balance c/d 10,00,000 11,10,000 11,10,000

WN2

 Land Account Dr. Cr. Particulars Amount (₹) Particulars Amount (₹) Balance b/d 2,00,000 Bank A/c (Sale- Bal. Fig.) 1,60,000 Profit and Loss A/c (Profit on Sale) 60,000 Balance c/d 1,00,000 2,60,000 2,60,000
Concept: Ascertainment of Cash Flow from Investing and Financing Activities
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#### APPEARS IN

TS Grewal Class 12 Accountancy - Analysis of Financial Statements
Chapter 4 Cash Flow Statement
Exercise | Q 27 | Page 98