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From the following details, calculate Cash Flow from Investing Activities:
| Particulars | 31st March, 2025 (₹) | 31st March, 2024 (₹) |
|---|---|---|
| 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 at the beginning of the year was sold at 10% profit.
2. Depreciation on Land and Building was ₹50,000 for the year.
3. Interest received on investments was ₹75,000.
Cash Flow from Investing Activities for the year ended 31st March, 2025
| Particulars | Amount (₹) | Amount (₹) |
|---|---|---|
| Purchase of Land and Building (WN1) | (6,50,000) | |
| Interest received on Investments | 75,000 | |
| Sale of Debentures (WN2) | 2,75,000 | |
| Purchase of Debentures (WN2) | (7,50,000) | (10,50,000) |
| Net Cash Used in Investing Activities | (10,50,000) |
Working Note 1: Land and Building Account
| Particulars | Amount (₹) | Particulars | Amount (₹) |
|---|---|---|---|
| To Balance b/d | 9,00,000 | By Depreciation A/c | 50,000 |
| To Bank A/c (Purchase, balancing figure) | 6,50,000 | By Balance c/d | 15,00,000 |
| Total | 15,50,000 | Total | 15,50,000 |
Working Note 2: Investment in Debentures Account
| Particulars | Amount (₹) | Particulars | Amount (₹) |
|---|---|---|---|
| To Balance b/d | 5,00,000 | By Bank A/c (Sale, 2,50,000 + 10% profit) | 2,75,000 |
| To Statement of Profit and Loss (Profit on Sale) | 25,000 | By Balance c/d | 10,00,000 |
| To Bank A/c (Purchase, balancing figure) | 7,50,000 | ||
| Total | 12,75,000 | Total | 12,75,000 |
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.23 - 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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