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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
From the following information, calculate the amount of Cash Flow from Investing Activities: Acquired machinery for ₹10,00,000, paying 10% immediately in cash and accepting a draft for the balance in favour of the vendor, payable after three months. (CBSE 2020)
Cash Flow from Investing Activities
| Particulars | Amount (₹) |
|---|---|
| Payment for Purchase of Machinery (10% of 10,00,000, paid immediately in cash) | (1,00,000) |
| Cash Used in Investing Activities | (1,00,000) |
Note: The remaining 90% (₹9,00,000), settled by accepting a draft payable after three months, is a non-cash financing arrangement and does not feature in the Cash Flow Statement until it is actually paid.
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 "T.S. Grewal Class 12 Vol 3 Chapter 5 Q.21 - Cash Flow Statement", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 5 - Cash Flow Statement.
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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