Question 22 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 22 Chapter 5 of +2-B

Cash Flow from Investing Activities

22. From the following details. calculate Cash Flow from Investing Activities:

Particulars	Closing (Rs)	Opening (Rs)
Machinery At Cost)	10,00,000	9,50,000
Accumulated Depreciation	1,50,000	1,10,000
Patents	2,00,000	3,00,000

 

Additional Information:

1. During the year, machine costing Rs 90,000 with accumulated depreciation of Rs 60,000 was sold for Rs 50,000.
2. Patents written off were Rs 50,000 while a part of patents were sold at a profit of Rs 40,000.

 

The solution of Question 22 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)	1,40,000
Less: Sale of Machinery	50,000
Less: Sale of Patents (WN 2)	90,000	Nil
Net Cash Used in Investing Activities		Nil

 

 

Working Note:- 1

Machinery Account

Particulars	Rs	Particular	Rs
To Balance b/d	9,50,000	By Provision for Depreciation A/c	60,000
To Profit on Sale ( Statement Profit and Loss )	20,000	By Bank A/c (Sale)	50,000
To Bank A/c (Purchase) (Bal. fig.)	1,40,000	By Balance c/d	10,00,000
	11,10,000		11,10,000

 

Patents Account

Particulars	Rs	Particular	Rs
To Balance b/d	3,00,000	By Patents Written off	50,000
To Profit on Sale ( Statement Profit and Loss )	40,000	By Bank A/c (Sale)	90,000
		By Balance c/d	2,00,000
	3,40,000		3,40,000

 

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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