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Question 23 Chapter 5 of +2-B
Cash Flow from Investing Activities
23. Welprint Ltd. has given the following information:
| Particulars | Opening (Rs) |
| Machinery as on 1st April, 2018 | 50,000 |
| Machinery as on 31st March, 2019 | 60,000 |
| Accumulated Depreciation on 1st April, 2018 | 25,000 |
| Accumulated Depreciation on 31st march, 2019 | 15,000 |
During the year, a machine costing Rs 25,000 accumulated depreciation there on Rs 15, 000 was sold for Rs 13,000.
Calculate Cash Flow from Investing Activities on the basis of the above information.
Cash Flow From for the year ended 31st March, 2019
| Particulars |
Rs |
|
|---|---|---|
| I. Cash Flow from Investing Activities | ||
| Purchase of Machinery (WN 1) | 35,000 | |
| Less: Sale of Machinery | 13,000 | |
| Net Cash Used in Investing Activities | 22,000 | |
Working Note:- 1
Machinery Account
| Particulars |
Rs | Particular | Rs |
|---|---|---|---|
| To Balance b/d | 50,000 | By Provision for Depreciation A/c | 15,000 |
| To Profit on Sale ( Statement Profit and Loss ) |
3,000 | By Bank A/c (Sale) | 13,000 |
| To Bank A/c (Purchase) (Bal. fig.) | 35,000 | By Balance c/d | 60,000 |
| 80,000 | 80,000 |
Accumulated Depreciation Account
| Particulars |
Rs | Particular | Rs |
|---|---|---|---|
| To Machinery A/c | 15,000 | By Patents Written off | 25,000 |
| To Balance c/d | 15,000 | By Profit and Loss A/c (Bal. Fig.) | 5,000 |
| 30,000 | 30,000 |
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Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
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