Loading Tutorstips...
✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
From the following extracts of a company, calculate Cash Flow from Investing Activities:
| Particulars | 31st March, 2025 (₹) | 31st March, 2024 (₹) |
|---|---|---|
| Goodwill | 75,000 | 1,00,000 |
| Patents | 1,00,000 | 75,000 |
| Land | 90,000 | 1,00,000 |
| Furniture | 2,46,000 | 21,000 |
| Plant and Machinery (Net) | 2,00,000 | 2,00,000 |
| 10% Investments | 1,80,000 | 2,00,000 |
| Accrued Interest on Investments | 6,000 | – |
Additional Information: Investment is sold at book value on 31st March, 2025.
Cash Flow from Investing Activities
| Particulars | Amount (₹) | Amount (₹) |
|---|---|---|
| Purchase of Patents (1,00,000 − 75,000) | (25,000) | |
| Purchase of Furniture (2,46,000 − 21,000) | (2,25,000) | |
| Interest received on Investments (WN) | 14,000 | |
| Sale of Investments (2,00,000 − 1,80,000, at book value) | 20,000 | |
| Sale of Land (1,00,000 − 90,000) | 10,000 | |
| Net Cash Used in Investing Activities | (2,06,000) |
Note: Goodwill’s decrease (₹25,000) is a non-cash write-off/amortisation with no sale mentioned, and Plant and Machinery (Net) is unchanged — neither affects Investing Activities.
Working Note: Interest on Investments
| Interest on Investments (10% of 2,00,000, opening balance for the full year, since sold only on the last day) | 20,000 |
| Less: Interest Accrued (not yet received) | (6,000) |
| Interest Received on Investments | 14,000 |
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.26 - 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.
You can take our custom-built interactive practice quiz directly on this page to test your understanding of "T.S. Grewal Class 12 Vol 3 Chapter 5 Q.26 - Cash Flow Statement" instantly.