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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
From the following information, calculate Cash Flow from Investing Activities:
| Particulars | 31st March, 2025 (₹) | 31st March, 2024 (₹) |
|---|---|---|
| Plant and Machinery | 10,00,000 | 8,50,000 |
| Investment (Long-term) | 1,00,000 | 40,000 |
| Land (At Cost) | 1,00,000 | 2,00,000 |
Additional Information:
1. Depreciation charged on Plant and Machinery ₹50,000.
2. Plant and Machinery with a Book Value of ₹60,000 was sold for ₹40,000.
3. Land was sold at a profit of ₹60,000.
4. No investment was sold during the year.
Cash Flow from Investing Activities
| Particulars | Amount (₹) | Amount (₹) |
|---|---|---|
| Purchase of Plant and Machinery (WN1) | (2,60,000) | |
| Purchase of Investments (1,00,000 − 40,000, no sale during the year) | (60,000) | |
| Sale of Plant and Machinery | 40,000 | |
| Sale of Land (WN2) | 1,60,000 | |
| Net Cash Used in Investing Activities | (1,20,000) |
Working Note 1: Plant and Machinery Account
| Particulars | Amount (₹) | Particulars | Amount (₹) |
|---|---|---|---|
| To Balance b/d | 8,50,000 | By Depreciation A/c | 50,000 |
| To Bank A/c (Purchase, balancing figure) | 2,60,000 | By Bank A/c (Sale) | 40,000 |
| By Statement of Profit and Loss (Loss on Sale, 60,000 − 40,000) | 20,000 | ||
| By Balance c/d | 10,00,000 | ||
| Total | 11,10,000 | Total | 11,10,000 |
Working Note 2: Land Account
| Particulars | Amount (₹) | Particulars | Amount (₹) |
|---|---|---|---|
| To Balance b/d | 2,00,000 | By Bank A/c (Sale, balancing figure) | 1,60,000 |
| To Statement of Profit and Loss (Profit on Sale) | 60,000 | By Balance c/d | 1,00,000 |
| Total | 2,60,000 | Total | 2,60,000 |
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.27 - 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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