Advertisements
Advertisements
Question
From the following information, calculate Cash Flows from Investing Activities:
| Particulars | 31-3-2024 (₹) |
31-3-2023 (₹) |
| Machinery (at cost) | 3,80,000 | 3,00,000 |
| Accumulated Depreciation | 62,000 | 45,000 |
Additional Information:
A machine costing ₹ 50,000 on which accumulated depreciation was ₹ 20,000 was sold at a profit of 10%.
Ledger
Advertisements
Solution
| Cash Flow from Investing Activities | |
| Particulars | Amount (₹) |
| Proceeds from the Sale of Machinery | 33,000 |
| Payment for Purchase of Machinery | (1,30,000) |
| Cash flow from investing activities | (97,000) |
Working Notes:
| Machinery Account | |||
| Particulars | Amount (₹) | Particulars | Amount (₹) |
| To Balance b/d | 3,00,000 | By Bank A/c (Sale) | 33,000 |
| To Statement of Profit and Loss (Profit on Sale) | 3,000 | By Accumulated Depreciation A/c | 20,000 |
| To Bank A/c (Purchase) (Bal.Fig.) | 1,30,000 | By Balance c/d | 3,80,000 |
| 4,33,000 | 4,33,000 | ||
shaalaa.com
Is there an error in this question or solution?
