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Question
From the following information, calculate the amount of cash flow from investing activities.
Acquired machinery for ₹ 10,00,000, paying 10% immediately in cash and accepting a draft for the balance in favour of the vendor, payable after three months.
Hint: Draft (Bill Payable) does not involve cash outflow.
Ledger
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Solution
Cash Flow from Investing Activities
| Particulars | Amount (₹) |
|---|---|
| Cash paid for the acquisition of Machinery (10% of ₹ 10,00,000) | (1,00,000) |
| Net Cash Used in Investing Activities | (1,00,000) |
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