Question 21 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 21 Chapter 5 of +2-B

Table of Contents

The solution of Question 21 Chapter 4 of +2-B: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

Cash Flow from Investing Activities

21. Mars Ltd. has Plant and Machinery whose written down value on 1st April, 2017 was 9,60,000 and on31st March, 2018 was 10,50,000. Depreciation for the year was 35,000. In the beginning of the year, a part of plant was sold for 45,000 which had a written down value of 30,000.
Calculate Cash Flow from Investing Activities

The solution of Question 21 Chapter 4 of +2-B: –

Cash Flow From for the year ended 31st March, 2019
Particulars		Rs
I. Cash Flow from Investing Activities
Purchase of Plant and Machinery (WN)		1,55,000
Less: Sale of Plant and Machinery		45,000
Net Cash Used in Investing Activities		1,10,000

Working Note:

Plant and Machinery Account
Particulars	Rs	Particular	Rs
To Balance b/d	9,60,000	By Depreciation	35,000
To Profit on Sale ( Statement Profit and Loss )	15,000	By Bank A/c (Sale)	45,000
To Bank A/c (Purchase) (Bal. fig.)	1,55,000	By Balance c/d	10,50,000
	11,30,000		11,30,000