Question 21 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 21 Chapter 5 of +2-B

Cash Flow from Investing Activities

21. Mars Ltd. has Plant and Machinery whose written down value on 1st April, 2017 was 9,60,000 and on31st March, 2018 was 10,50,000. Depreciation for the year was 35,000. In the beginning of the year, a part of plant was sold for 45,000 which had a written down value of 30,000.
Calculate Cash Flow from Investing Activities

 

The solution of Question 21 Chapter 4 of +2-B: -

 

Cash Flow From for the year ended 31st March, 2019

Particulars		Rs
I. Cash Flow from Investing Activities
Purchase of Plant and Machinery (WN)		1,55,000
Less: Sale of Plant and Machinery		45,000
Net Cash Used in Investing Activities		1,10,000

Working Note:

Plant and Machinery Account

Particulars	Rs	Particular	Rs
To Balance b/d	9,60,000	By Depreciation	35,000
To Profit on Sale ( Statement Profit and Loss )	15,000	By Bank A/c (Sale)	45,000
To Bank A/c (Purchase) (Bal. fig.)	1,55,000	By Balance c/d	10,50,000
	11,30,000		11,30,000

 

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Also, Check out the solved question of previous Chapters: -

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

• Chapter No. 1 - Financial Statement of Not-For-Profit Organisations
• Chapter No. 2 - Accounting for Partnership Firms - Fundamentals
• Chapter No. 3 - Goodwill: Nature and Valuation
• Chapter No. 4 - Change in Profit-Sharing Ratio Among the Existing Partners
• Chapter No. 5 - Admission of a Partner
• Chapter No. 6 - Retirement/Death of a Partner
• Chapter No. 7 - Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 8 - Company Accounts -  Accounting for Share Capital
• Chapter No. 9 - Company Accounts - Issue of Debentures
• Chapter No. 10 - Redemption of Debentures

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 1 - Financial Statements of a Company
• Chapter No. 2 - Financial Statement Analysis 
• Chapter No. 3 - Tools of Financial Statement Analysis - Comparative Statements and Common- Size Statements
• Chapter No. 4 - Accounting Ratios
• Chapter No. 5 - Cash Flow Statement

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication