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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

Additional Information:
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.

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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
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