
Question 31 Chapter 5 of +2-B
31. From the following particulars, calculate Cash Flow from Investing Activities
| Particulars | Purchased | Sold |
| Rs | Rs | |
| Machinery | 6,20,000 | 2,00,000 |
| Investments | 2,40,000 | 80,000 |
| Goodwill | 1,00,000 | -- |
| Patents | -- | 1,50,000 |
Additional Information:
1. Interest received on debentures held as investment Rs 8,000.
2. Interest paid on debentures issued Rs 20,000.
3. Dividend received on shares held as investment Rs 20,000.
4. Dividend paid on Equity Share Capital Rs 30,000.
5. A plot of land was purchased out of the surplus funds for investment purposes and was let out
for commercial use. Rent received Rs 50,000 during the year.
Cash Flow From for the year ended 31st March, 2019
| Particulars |
Rs |
|
|---|---|---|
| I. Cash Flow from Investing Activities | ||
| Sale of Machinery | 2,00,000 | |
| Rent Received | 50,000 | |
| Dividend Received | 20,000 | |
| Sale of Investments | 80,000 | |
| Interest on Debentures | 8,000 | |
| Sale of Patents | 1,50,000 | |
| Less: Purchase of Machinery | 6,20,000 | |
| Less: Purchase of Investments | 2,40,000 | |
| Less: Purchase of Goodwill | 1,00,000 | 4,52,000 |
| Net Cash Used in Investing Activities | 4,52,000 | |
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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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