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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
From the following particulars, calculate Cash Flow from Investing Activities:
| Particulars | Purchased (₹) | Sold (₹) |
|---|---|---|
| Machinery | 6,20,000 | 2,00,000 |
| Investments | 2,40,000 | 80,000 |
| Goodwill | 1,00,000 | – |
| Patents | – | 1,50,000 |
Additional Information:
1. Interest received on debentures held as investment ₹8,000.
2. Interest paid on debentures issued ₹20,000.
3. Dividend received on shares held as investment ₹20,000.
4. Dividend paid on Equity Share Capital ₹30,000.
5. A plot of land was purchased out of surplus funds for investment purposes and was let out for commercial use. Rent received ₹50,000 during the year.
Cash Flow from Investing Activities
| Particulars | Amount (₹) | Amount (₹) |
|---|---|---|
| Purchase of Machinery | (6,20,000) | |
| Purchase of Investments | (2,40,000) | |
| Purchase of Goodwill | (1,00,000) | |
| Sale of Machinery | 2,00,000 | |
| Rent Received | 50,000 | |
| Dividend Received | 20,000 | |
| Sale of Investments | 80,000 | |
| Interest Received on Debentures | 8,000 | |
| Sale of Patents | 1,50,000 | |
| Net Cash Used in Investing Activities | (4,52,000) |
Note: Dividend Paid (₹30,000) and Interest Paid on Debentures (₹20,000) are Financing Activity items and are excluded here. The cost of the land purchased for investment purposes is not quantified in the given data, so only the Rent Received from it is included.
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.28 - 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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