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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Mars Ltd. has Plant and Machinery whose written down value on 1st April, 2024 was ₹9,60,000 and on 31st March, 2025 was ₹10,50,000. Depreciation for the year was ₹35,000. In the beginning of the year, a part of the plant was sold for ₹45,000 which had a written down value of ₹30,000.
Calculate Cash Flow from Investing Activities.
Cash Flow from Investing Activities for the year ended 31st March, 2025
| Particulars | Amount (₹) | Amount (₹) |
|---|---|---|
| Purchase of Plant and Machinery (WN) | (1,55,000) | |
| Sale of Plant and Machinery | 45,000 | |
| Net Cash Used in Investing Activities | (1,10,000) |
Working Note: Plant and Machinery Account
| Particulars | Amount (₹) | Particulars | Amount (₹) |
|---|---|---|---|
| To Balance b/d | 9,60,000 | By Depreciation A/c | 35,000 |
| To Statement of Profit and Loss (Profit on Sale, 45,000 − 30,000) | 15,000 | By Bank A/c (Sale) | 45,000 |
| To Bank A/c (Purchase, balancing figure) | 1,55,000 | By Balance c/d | 10,50,000 |
| Total | 11,30,000 | Total | 11,30,000 |
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 "T.S. Grewal Class 12 Vol 3 Chapter 5 Q.22 - Cash Flow Statement", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 5 - Cash Flow Statement.
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