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Question 36 Chapter 5 of +2-B
Cash Flow From investing Activities
36. (Cash Flow from Investing Activities/Sale of Plant at Profit) A company had the following balances :
| ₹ | |
| Plant Opening | 5,00,000 |
| Plant Closing | 7,00,000 |
During the year 30% of the plant was sold at 30% profit on cost.
Calculate cash flow from investing activities.
Cash Flow from investing activities
| Particulars |
Rs |
|
|---|---|---|
| Inflow from Sale of Plant | 1,95,000 | |
| Less: Outflow from the purchase of Plant* | (3,50,000) | |
| Cash Flow from Operating activities | (1,55,000) | |
Working Note
Plant Account
| Particulars |
Amount ₹ |
Particulars |
Amount ₹ |
|---|---|---|---|
| To Balance b/d | 5,00,000 | By Bank A/c -Sale |
1,95,000 |
| To Statement of Profit and Loss -Profit on Sale |
45,000 | (3,50,000) | |
| To Bank –Purchase (Bal. fig.) | 3,50,000 |
By Balance c/d | 7,00,000 |
| 8,95,000 |
8,95,000 |
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.
This guide covers "Question 36 Chapter 5 of +2-B - USHA Publication 12 Class", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to USHA Publication Part 2 volume I.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
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12 December 2022
8 January 2023
