Question 24 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 24 Chapter 5 of +2-B

Cash Flow from Investing Activities

24. From the following details. Calculate Cash Flow from Investing Activities

Particulars	31st March,	31st March,
	2019	2018
Investment in 10% Debentures	10,00,000	5,00,000
Land and Building	15,00,000	9,00,000

Additional Information:
1. Half of the investment held in the beginning of the year were sold at 10% profit.
2. Depreciation on Land and Building was Rs 50,000 for the year.
3. Interest received on investments Rs 75,000.

 

The solution of Question 24 Chapter 4 of +2-B: -

 

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

Particulars		Rs
I. Cash Flow from Investing Activities
Interest received on Investments	75,000
Sale of Debentures (WN 1)	2,75,000
Less: Purchase of Land and Building (WN 2)	6,50,000
Less: Purchase of Debentures	7,50,000	10,50,000
Net Cash Used in Investing Activities		10,50,000

 

 

Working Note:- 1

10% Debentures Account

Particulars	Rs	Particular	Rs
To Balance b/d	5,00,000	By Bank A/c (Sale)	2,75,000
To Profit on Sale ( Statement Profit and Loss )	25,000	By Balance c/d	10,00,000
To Bank A/c (Purchase) (Bal. fig.)	7,50,000
	12,75,000		12,75,000

 

Land and Building Account

Particulars	Rs	Particular	Rs
To Machinery A/c	9,00,000	By Depreciation	50,000
To Balance c/d	6,50,000	By Balance c/d	15,00,000
	15,50,000		15,50,000

 

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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